COVID-19 (Temporary Measures) (Amendment No. 3) Bill · 2020. 11. 2. · COVID-19 (Temporary Measures) (Amendment No. 3) Bill Bill No. 43/2020 [Urgent Bill]. Read the first time on

COVID-19 (Temporary Measures)(Amendment No. 3) Bill

Bill No. 43/2020 [Urgent Bill].

Read the first time on 2 November 2020.

A BILL

i n t i t u l e d

An Act to amend the COVID-19 (Temporary Measures) Act 2020.

Be it enacted by the President with the advice and consent of theParliament of Singapore, as follows:

Short title and commencement

1.—(1) This Act is the COVID-19 (Temporary Measures)(Amendment No. 3) Act 2020.

(2) Sections 3 and 11(b) are deemed to have come into operation on5 15 October 2020.

(3) Sections 6, 7, 8, 9, 10 and 11(a) and (c) to (k) come intooperation on a date that the Minister appoints by notification in theGazette.

Amendment of section 1

10 2. Section 1 of the COVID-19 (Temporary Measures) Act 2020(called in this Act the principal Act) is amended by inserting,immediately after subsection (4), the following subsections:

“(4A) Despite the expiry of Part 2, provisions in Part 2 andregulations made under section 19 that have been incorporated

15 by reference in any other Part or regulations made under anyother Part, continue to have effect in relation to that other Part orthose other regulations.

(4B) Despite the expiry of Part 2, sections 10 and 11 continueto apply for the purpose of appointing assessors to make

20 determinations under Part 8.”.


3. Section 3 of the principal Act is amended by deletingsubsections (2) and (3) and substituting the following subsections:

“(2) The Minister may, by order in the Gazette, extend or25 shorten for or by a period determined by the Minister, the

prescribed period as it applies to —

(a) this Part or Part 2 or 3; or

(b) a description of scheduled contracts in Part 2, or adescription of contracts within such description in

30 Part 2,

and that period may be extended or shortened more than once.

2

(3) An order mentioned in subsection (2) made in relation to adescription of contracts under paragraph (b) of that subsectionmay specify that the extension of the prescribed period does notapply in relation to any paragraph of section 5(3), and the

5provisions of Part 2 apply in relation to such contracts during theextension as if that paragraph were omitted.”.

Amendment of section 19X

4. Section 19X(5) of the principal Act is amended by inserting,immediately after the words “prescribed property,”, the words “the

10criteria for a PTO or the additional criteria that a PTO is to satisfy forthe additional rental relief,”.


5. Section 32 of the principal Act is amended —

(a) by deleting the word “and” at the end of paragraph (h), and15by inserting immediately thereafter the following

paragraphs:

“(ha) for the purpose of accounting for any rentalrelief or additional rental relief to which atenant of any property is entitled under

20Part 2A —

(i) to treat the whole or part of thebenefit that the owner of the propertyhas yet to pass to the tenant by theprescribed time under section 29(2),

25as having already been passed to thetenant by a date specified in theregulations;

(ii) to provide that the Panel, whenmaking a determination under

30section 30, must take into accountthe benefit that is treated by aregulation made pursuant tosub-paragraph (i) as having beenpassed to the tenant;

3

(iii) to treat the whole or part of thebenefit that the Panel has determinedunder section 30 that the owner isrequired to pass to the tenant, as

5 having already been passed to thetenant by a date specified in theregulations; and

(iv) to provide for the recovery by theowner of the whole or part of the

10 benefit that the owner has alreadypassed to the tenant after theprescribed time in section 29(2) inreliance on the regulations in forcebefore the date of the making of a

15 regulation pursuant to thissub-paragraph, or pursuant to adetermination of the Panel;

(hb) to provide for the recovery by the owner ofa property from a tenant of the property of

20 the whole or part of the benefit that waspassed to the tenant under specifiedcircumstances; and”; and

(b) by renumbering the section as subsection (1) of thatsection, and by inserting immediately thereafter the

25 following subsections:

“(2) Regulations made under this section for thepurpose of prescribing the amount or extent of thebenefit that the owner of any property has to pass to atenant of the property, may be made to operate

30 retrospectively but not earlier than 13 May 2020.

(3) Regulations made under this section may, inrespect of any retrospective regulations insubsection (2), also provide for the recovery by theowner of any property from a tenant of the property of

35 the whole or part of the benefit that was passed to thetenant in reliance on the regulations in force before

4

the date the retrospective regulations in subsection (2)were made.”.

New Part 8A

6. The principal Act is amended by inserting, immediately after5section 39, the following Part:

“PART 8A

EXTENSION OF TIME FORCONSTRUCTION CONTRACTS

Application and interpretation of this Part

1039A.—(1) This Part applies to a construction contract(including one to which the Government is a party) —

(a) that was entered into before 25 March 2020, but not ifthe construction contract was renewed (other thanautomatically) on or after that date;

15(b) that remains in force on 2 November 2020; and

(c) where, as at 7 April 2020, any construction works tobe performed under the construction contract have notbeen certified in accordance with the constructioncontract as completed.

20(2) In this Part —

“completion date”, in relation to any construction works tobe performed under a construction contract, means thedate by which the construction works must be certifiedin accordance with the construction contract as

25completed, failing which liquidated damages becomepayable by the party failing to so complete theconstruction works;

“construction works”, in relation to a construction contract,means the construction works (within the meaning given

30by section 3(1) of the Building and ConstructionIndustry Security of Payment Act (Cap. 30B)) to beperformed under the construction contract.

5

Extension of time to complete construction works

39B.—(1) Subject to subsection (3), any completion date forany of those construction works provided by the constructioncontract is extended for those construction works by 122 days

5 from and including the completion date, less the number of daysin subsection (2).

(2) Where the completion date to be extended undersubsection (1) was itself the result of an extension grantedunder the construction contract or otherwise agreed between the

10 parties to the contract, and the latter extension included anynumber of days in the period between 7 April 2020 and 6 August2020 (both dates inclusive), then the period in subsection (1) isreduced by the number of those days.

(3) Subsection (1) does not apply to any completion date for15 those construction works (whether it is a date before, on or after

7 April 2020) if —

(a) any of those construction works were performed atany time between 20 April 2020 and 30 June 2020(both dates inclusive);

20 (b) any of the following, namely:

(i) proceedings before a court;

(ii) arbitral proceedings under the Arbitration Act(Cap. 10);

(iii) such other proceedings as may be prescribed,

25 have, before 2 November 2020, been commenced inrelation to a failure to comply with the completiondate (without the extension under subsection (1)),including any such proceedings for the purposes ofenforcing any order or judgment obtained in those

30 proceedings; or

(c) any judgment, arbitral award, or compromise orsettlement entered into in the course or as a resultof any proceedings in paragraph (b), has been given or

6

made before 2 November 2020 in relation to thefailure mentioned in that paragraph.

(4) Where the completion date for any construction works isextended under subsection (1), then, despite any law or anything

5in the construction contract —

(a) the completion date so extended is treated as thecompletion date provided by the construction contractfor those construction works, for the purposes of theconstruction contract; and

10(b) any liability for a failure to comply with thecompletion date (without the extension undersubsection (1)) is extinguished, except in prescribedcircumstances or to the extent prescribed.

(5) To avoid doubt, nothing in this section prevents any15completion date extended under subsection (1) from being

further extended in accordance with any provision in theconstruction contract allowing for an extension of thecompletion date.

(6) The Minister may make regulations for the purpose of20carrying out or giving effect to this Part, and these regulations

may in particular provide for the following:

(a) the recovery by a party to a construction contract of anamount from the other party that was paid before2 November 2020 for any liability extinguished under

25subsection (4)(b);

(b) the prescribing of any matter that may be prescribedunder this Part.”.

New Part 8B

7. The principal Act, as amended by section 6, is amended by30inserting, immediately after section 39B, the following Part:

7

“PART 8B

TEMPORARY MEASURES FOR COST-SHARING INCONSTRUCTION CONTRACTS

Application of this Part

5 39C. This Part applies to any construction contract (includingone to which the Government is a party) —

(a) that was entered into before 25 March 2020, but not ifthe construction contract was renewed (other thanautomatically) on or after that date;

10 (b) that remains in force on 2 November 2020;

(c) where the party (called in this Part A) for whom theconstruction works are performed under theconstruction contract is not an individual, other thanan individual acting as a sole proprietor in the course

15 of the business of the sole proprietorship; and

(d) where, as at 7 April 2020, there are constructionworks (within the meaning given by section 3(1) ofthe Building and Construction Industry Security ofPayment Act (called in this Part SOPA)) required to

20 be performed under the construction contract, thathave not been certified in accordance with theconstruction contract as completed.

Cost-sharing

39D.—(1) Subject to subsection (2), where —

25 (a) the party (called in this Part B) required to perform theconstruction works under the construction contract isor will be unable to complete any of thoseconstruction works by the completion date (withoutthe extension under Part 8A) provided in the

30 construction contract for those construction works(whether the completion date was or is before, on orafter 7 April 2020);

8

(b) B’s inability is to a material extent caused by aCOVID-19 event; and

(c) as a result of B’s inability, B has incurred or incurs anyqualifying cost for the purpose of or in connection

5with the performance of any of those constructionworks, in relation to the period from 7 April 2020 tothe last day of the prescribed period for thedescription of contracts to which the constructioncontract belongs (both dates inclusive),

10then, subject to subsection (2), B is entitled to claim from A, andA is liable to pay B, the lesser of the following amounts for eachspecified period:

(d) 50% of the total qualifying costs for anything done foror provided to or enjoyed by B in the specified period;

15(e) 0.2% of the contract sum.

(2) The total amount that B may claim under subsection (1)must not exceed 1.8% of the contract sum.

(3) To avoid doubt, for the purpose of subsection (1)(d), wherethe qualifying costs incurred for anything done for or provided

20to or enjoyed by B relate to 2 or more specified periods, thosequalifying costs must be pro-rated for each of those specifiedperiods.

(4) Where subsection (1) is inconsistent with any provision inthe construction contract for the cost-sharing of any qualifying

25costs, then subsection (1) applies to the exclusion of thatprovision, to the extent of the inconsistency.

(5) Subject to subsection (6), the amount that B may claimunder subsection (1) is recoverable from A as a debt due to B.

(6) Where the construction contract is one to which SOPA30applies, B must claim for the amount of qualifying costs to

which B is entitled under this section for any specified period byincluding the amount in any payment claim which B makes andserves on A under section 10(1) of SOPA, whether on its own or

9

together with any progress payment for the same or a differentperiod.

(7) For the purpose of subsection (6), the amount of qualifyingcosts included in any payment claim may be for one or more

5 specified periods.

(8) For the purpose of subsection (6), Part III of SOPA appliesto qualifying costs as it applies to progress payments, subject toany prescribed modifications.

(9) In this section —

10 “contract sum” means the total sum payable for theconstruction works to which the construction contractrelates, as at the time the construction contract wasentered into;

“public authority” means —

15 (a) any ministry, department or Organ of State ofthe Government, or a public officer of anyministry, department or Organ of State of theGovernment; or

(b) any public authority established by or under any20 public Act for a public purpose or an officer or

employee of the public authority;

“qualifying costs” means any of the following:

(a) any rent or hire-purchase instalment for anyplant or equipment required to perform the

25 construction works that B is or will be unable tocomplete;

(b) any costs for maintaining the construction site atwhich those construction works are performed(including for vector and pest control, site

30 security, provision of utilities and cleaning ofthe construction site), by any person engaged byB (other than as an employee of B);

(c) any costs to extend the validity period of anyinsurance obtained and any performance bond

10

issued in respect of the construction contract,because of the inability mentioned insubsection (1);

(d) any rent or other fee for the use of premises in5Singapore to store any materials or equipment

required to perform those construction works;

(e) such other costs as may be prescribed,

but does not include the following costs:

(f) manpower costs, including salaries payable to10B’s employees (whether or not carrying out the

construction works that B is or will be unable tocomplete), their accommodation and transportcosts, and any foreign worker levy payable inrespect of any of them;

15(g) any costs incurred by B in respect of anyadditional steps or efforts to accelerate theperformance of the construction works so thatthey may be completed by the completion date(including that date as extended under Part 8A);

20(h) any costs incurred in adopting any safemanagement measures or other measures toprevent, protect against or otherwise control theincidence or transmission of COVID-19,including any such measures in any control

25order issued under Part 7 or any advisory,guideline or circular issued by any publicauthority;

(i) costs for which B has received —

(i) relief from the Government or any public30authority;

(ii) relief under Part 2A or 8; or

(iii) such other relief as may be prescribed,

to the extent of the relief;

11

(j) such other costs as may be prescribed;

“specified period” means each of the following:

(a) the period from 7 April 2020 to 30 April 2020(both dates inclusive);

5 (b) the period that is a month or less and that beginson the first day of a month and ends on the lastday of the prescribed period mentioned insubsection (1)(c);

(c) each month in between the periods in10 paragraphs (a) and (b).

Adjudication of disputes

39E.—(1) Where —

(a) B has included an amount for qualifying costs undersection 39D(1) in a payment claim under

15 section 10(1) of SOPA; and

(b) A fails to pay B the amount within the time requiredunder SOPA for the payment of payment claims forprogress payments,

then B is, in relation to that amount, entitled to make an20 adjudication application under section 12 of SOPA and apply for

adjudication under section 13 of SOPA.

(2) For the purpose of subsection (1), Part IVof SOPA appliesto a payment claim for qualifying costs as it applies to a paymentclaim for a progress payment, subject to subsections (3), (4) and

25 (5) and any other prescribed modifications.

(3) For the purpose of subsection (1) and without affectingsection 13(3) of SOPA, Bmust in the adjudication application—

(a) state the amount B is claiming under section 39D(1);and

30 (b) provide all information and documents relevant to theclaim, including —

12

(i) an extract of the terms of any contract that relateto the qualifying costs, and to the contract sum;

(ii) information and documents (including invoicesand receipts) showing the amount of the

5qualifying costs and the date the qualifyingcosts were incurred by B; and

(iii) information and documents showing theamount of relief mentioned in paragraph (i) ofthe definition of “qualifying costs” in

10section 39D(9).

(4) In determining the adjudication application undersection 17 of SOPA, the adjudicator (including a replacementadjudicator) appointed to determine the adjudication applicationunder that Act, must determine —

15(a) whether this Part applies to B; and

(b) the amount under section 39D(1) which A is liable topay B.

(5) A review adjudicator may, upon a review of adetermination mentioned in subsection (4), substitute that

20determination with his or her own determination.

Regulations for this Part

39F. The Minister may make regulations for the purpose ofcarrying out or giving effect to this Part, and these regulationsmay in particular provide for the following:

25(a) the forms to be used and the information ordocuments to be furnished for any purpose underthis Part;

(b) any modification of SOPA necessary or expedient forcarrying out or giving effect to this Part;

30(c) the prescribing of any matter that may be prescribedunder this Part.”.

13

New Part 8C

8. The principal Act, as amended by section 7, is amended byinserting, immediately after section 39F, the following Part:

“PART 8C

5 EXTENSION OF DELIVERY DATE

Interpretation of this Part

39G. In this Part, unless the context otherwise requires —

“affected agreement” means an agreement described insection 39H;

10 “cash equivalent”, in relation to any payment, includespayment by a cheque, a credit or debit card or anyelectronic funds transfer;

“commercial developer” means any person that engages inthe business of commercial development, and includes

15 the Housing and Development Board established by theHousing and Development Act (Cap. 129) and theJurong Town Corporation established by the JurongTown Corporation Act (Cap. 150);

“commercial development” means the construction or20 causing the construction of any number of units of

commercial property, including any building operationsin, on, over or under the land for the purpose of erectingsuch commercial property, and the sale of land whichwould be appurtenant to such commercial property;

25 “commercial property” means any building or otherpremises which are permitted by or under any writtenlaw for use for a commercial or an industrial purpose, orfor mixed purposes the predominant purpose of which isa commercial or an industrial purpose;

30 “delivery date” means the delivery possession date orvacant possession date provided by an affectedagreement on or before which the housing developeror commercial developer must deliver possession of one

14

or more units of housing accommodation or commercialproperty to the purchaser under the affected agreement;

“developer” means the housing developer or commercialdeveloper (as the case may be) that is a party to an

5affected agreement;

“extended delivery date”means the delivery date treated asbeing provided by an affected agreement after anextension under section 39I;

“housing accommodation” includes a building or tenement10wholly or principally constructed, adapted or intended

for human habitation, or for human habitation and asbusiness premises;

“housing developer” means any person that engages in abusiness of housing development, and includes the

15Housing and Development Board established by theHousing and Development Act;

“housing development” means the construction or causingthe construction of any number of units of housingaccommodation, including any building operations in,

20on, over or under the land for the purpose of erectingsuch housing accommodation, and the sale of landwhich would be appurtenant to such housingaccommodation;

“original delivery date” means the delivery date provided25by an affected agreement before any extension of that

date under section 39I;

“qualifying costs” means —

(a) where, as a result of the delay in receivingpossession of the unit or units in question under

30an affected agreement, alternative housingaccommodation or alternative commercialproperty (as the case may be) (called in thisPart alternative premises) must be obtained, anyrent for such alternative premises for the

35period —

15

(i) from and including the original deliverydate provided by the affected agreement;and

(ii) to and including the earlier of —

5 (A) the actual date of delivery ofpossession of the unit or units inquestion; and

(B) the extended delivery date; or

(b) any of the following costs:

10 (i) where, as a result of the delay in receivingpossession of the unit or units in questionunder an affected agreement, alternativepremises must be obtained —

(A) any estate agent fees incurred for15 securing the alternative premises;

and

(B) any moving costs incurred inmoving to the alternative premises;

(ii) such other costs as may be prescribed;

20 “rent” includes any licence fee and any matter that isprescribed as being rent, but excludes any service chargeand maintenance charge and any other matter that isprescribed as not being rent;

“unit”means a horizontal stratum of any building or part of25 a building, whether such stratum is on one or more

levels, whether the building or part of the building is ahousing development or commercial development, andwhich is intended for use in accordance with theprovisions of any written law as a complete and

30 separate unit for residential, commercial or industrialpurpose, as the case may be.

16


39H.—(1) This Part applies in relation to an agreementwhere —

(a) the agreement was entered into —

5(i) between —

(A) a housing developer and a purchaser forthe sale and purchase of one or more unitsof housing accommodation; or

(B) a commercial developer and a purchaser10for the sale and purchase of one or more

units of commercial property,

before 25 March 2020 or pursuant to an optiongranted before that date; or

(ii) between the Housing and Development Board15and a purchaser for the sale and purchase of one

or more units of housing accommodation orcommercial property where an option for anyunit of housing accommodation or commercialproperty within the housing development or

20commercial development was granted before25 March 2020;

(b) the agreement provides for a delivery date that is on orafter 1 February 2020;

(c) a permit to carry out structural works in any building25works for the housing accommodation or commercial

property was granted under section 6(3) of theBuilding Control Act (Cap. 29) before 7 April2020; and

(d) as at 7 April 2020, a temporary occupation permit in30respect of the housing accommodation or commercial

property has not been granted under section 12(3) ofthe Building Control Act.

17

(2) However, this Part does not apply to any agreement if —

(a) any of the following, namely:

(i) proceedings before a court;

(ii) arbitral proceedings under the Arbitration Act5 (Cap. 10);

(iii) such other proceedings as may be prescribed,

have, before 2 November 2020, been commenced inrelation to a failure to deliver possession of one ormore units of housing accommodation or commercial

10 property to the purchaser under the affectedagreement by the original delivery date, includingany such proceedings for purposes of enforcing anyorder or judgment obtained in those proceedings; or

(b) any judgment, arbitral award, or compromise or15 settlement entered into in the course or as a result

of any proceedings in paragraph (a), has been given ormade before 2 November 2020 in relation to thefailure mentioned in that paragraph.

Extension of delivery date

20 39I.—(1) Despite any law or anything in the affectedagreement, the delivery date provided by the affectedagreement for the unit or units in question is extended by aperiod not exceeding 122 days after that date, if the developernotifies the purchaser of the period of the extension —

25 (a) in the prescribed form and manner; and

(b) within the prescribed time.

(2) The delivery date may be extended under subsection (1)one or more times, except that the total period of all extensionsmust not exceed 122 days.

30 (3) Despite subsection (2) —

(a) the original delivery date may be extended for aperiod exceeding 122 days;

18

(b) the delivery date following any one or moreextensions under subsection (2) may be extendedsuch that the total period of all extensions exceeds122 days; or

5(c) where the delivery date has been extended underparagraph (a) or (b), the extended delivery date maybe further extended,

in accordance with subsections (4) and (5).

(4) For the purpose of subsection (3), the developer must10notify the purchaser of its intention to extend the delivery date

and of the proposed period of extension —

(a) in the prescribed form and manner; and


(5) For the purpose of subsection (3), where an assessor15certifies under section 39O(1)(a) that —

(a) the developer is unable to deliver possession of theunit or units of housing accommodation orcommercial property by the delivery date inquestion and the inability is to a material extent

20caused by a COVID-19 event; and

(b) the developer may only be reasonably expected todeliver possession of the unit or units by the end of aspecified period after the delivery date in question,

then the delivery date in question is extended by the specified25period in paragraph (b).

(6) The developer must notify the purchaser of the assessor’scertification —



30(7) Where the delivery date is extended under subsection (1)or (5), then, despite any law or anything in the affectedagreement —

19

(a) the extended delivery date following the extension istreated as the delivery date provided by the affectedagreement, for the purposes of the affectedagreement; and

5 (b) any liability for a failure to comply with the deliverydate (without the extension) is extinguished, except inprescribed circumstances or to the extent prescribed.

Moratorium

39J.—(1) Despite any law or anything in an affected10 agreement, a purchaser of an affected agreement who is

notified under section 39I(4) must not take any of the actionsdescribed in subsection (2) during the moratorium perioddescribed in subsection (3) in relation to the developer’sfailure to deliver possession of one or more units of housing

15 accommodation or commercial property to the purchaser underthe affected agreement by the original delivery date or extendeddelivery date, as the case may be (called in this section thesubject failure).

(2) The actions mentioned in subsection (1) are —

20 (a) making any deduction from any instalment orpayment due under the affected agreement for anydamages or liquidated damages and any other costallowed under the affected agreement for a failure bythe developer to comply with the delivery date; and

25 (b) any prescribed action.

(3) The moratorium period mentioned in subsection (1) —

(a) starts on the day on which the purchaser is notifiedunder section 39I(4) in relation to the affectedagreement; and

30 (b) ends on the earlier of the following:

(i) the day the purchaser is notified undersection 39I(6) of the assessor’s certification;

(ii) the prescribed date.

20

(4) Where the purchaser makes a deduction in contraventionof subsection (2)(a), the purchaser is liable to repay thedeveloper the amounts so deducted and those amounts arerecoverable from the purchaser as a debt due to the developer.

5(5) Where any prescribed action in subsection (2)(b) is anaction mentioned in section 5(3), then sections 5(5), (7), (9), (10)and (11) and 8(2), (3), (4), (5) and (6) and the regulations undersection 5(12) (whichever is applicable), apply with thenecessary modifications in relation to that prescribed action as

10they apply in relation to an action mentioned in section 5(3), andfor this purpose —

(a) a reference to the subject inability is to the subjectfailure;

(b) a reference to the notification for relief is to the notice15given to the purchaser under section 39I(4);

(c) a reference to the period mentioned in section 5(7) isto the moratorium period mentioned in subsection (1);

(d) a reference to section 5(2) is to subsection (1); and

(e) a reference to regulations made under section 19 is to20regulations made under section 39P.

(6) Where any prescribed action in subsection (2)(b) is thecommencement or continuation of any proceedings against thedeveloper or the developer’s guarantor or surety before a court,an arbitral tribunal or other person or body, then any such

25proceedings that are already pending at the start of themoratorium period, must be stayed on the lodgment by thedeveloper of a copy of the notice given to the purchaser undersection 39I(4) with the court, arbitral tribunal or other person orbody before which proceedings are brought, until the end of the

30moratorium period.

21

Reimbursement by developer for costs of purchaser inextension period

39K.—(1) Despite any law or anything in the affectedagreement, where the delivery date is extended under

5 section 39I, the developer —

(a) is only liable to the purchaser for the qualifying costsincurred by the purchaser, up to the prescribedamount; and

(b) is not liable for any other cost, expense, loss or other10 sum that the developer would, but for the extension,

be liable to pay under any law or the affectedagreement for failing to deliver possession of theunit or units in question on or before the originaldelivery date provided by the affected agreement.

15 (2) The purchaser claiming reimbursement from the developerof the qualifying costs incurred by the purchaser, as permittedunder subsection (1)(a), must do so —



20 (3) The claim must be accompanied by such information ordocument as may be prescribed.

(4) Upon receiving a claim mentioned in subsection (2), if thedeveloper does not dispute the claim, the developer must pay thepurchaser the amount claimed —

25 (a) up to the prescribed amount;

(b) in cash or cash equivalent; and

(c) within the prescribed time.

(5) The purchaser may set-off the whole or part of any amountthat the developer is liable to pay under this section against any

30 instalment payment payable by the purchaser to the developerunder the affected agreement, but may only do so —

(a) after the moratorium period mentioned insection 39J(3); and

22

(b) if the purchaser and developer have agreed on theamount that the developer is so liable to pay or anassessor has made a determination undersection 39O(1)(b) on the amount that the developer

5is so liable to pay.

Registrar of assessors

39L.—(1) The Minister is to appoint a Registrar of assessorsto whom applications may be made —

(a) by a developer in relation to an affected agreement—10for the purpose of a certification under

section 39O(1)(a)(ii); and

(b) by a developer or a purchaser in relation to an affectedagreement— for a determination as to the amount thedeveloper is liable to reimburse the purchaser under

15section 39K.

(2) The Minister may in addition appoint Deputy Registrars ofassessors.

(3) Subject to regulations made under section 39P, all thepowers and duties conferred and imposed on the Registrar of

20assessors may be exercised by a Deputy Registrar of assessors.

Panel of assessors

39M. For the purposes of section 39N(4), the Minister mustappoint a panel of assessors comprising persons who satisfy therequirements prescribed for the purposes of this section.

25Application for certification or determination

39N.—(1) An application mentioned in section 39L(1) mustbe submitted within the prescribed time, and in the prescribedform and manner, and be accompanied by the following:

(a) any prescribed application fee;

30(b) any prescribed certification fee;

(c) any other prescribed fee;

23

(d) any declaration, information or document that theRegistrar of assessors requires.

(2) In relation to an application under section 39L(1)(b), acopy of the application and the declaration, information or

5 document mentioned in subsection (1)(d) must be served withinthe prescribed time by the applicant on the other party to theaffected agreement.

(3) The Registrar of assessors may reject an application if —

(a) the application is incomplete or otherwise not made or10 served in accordance with this section;

(b) the Registrar of assessors reasonably suspects thatany information or document provided by theapplicant in or accompanying the application isfalse or misleading in a material particular; or

15 (c) it appears to the Registrar of assessors, from theapplication or any information or document providedby the applicant, that the application is frivolous or anabuse of process.

(4) Unless the Registrar of assessors rejects an application20 under subsection (3), the Registrar of assessors must appoint an

assessor to determine the application and must notify thefollowing of the same:

(a) in relation to an application undersection 39L(1)(a) — the developer;

25 (b) in relation to an application undersection 39L(1)(b) — the parties to the affectedagreement.

Assessor’s determination

39O.—(1) The assessor must —

30 (a) in relation to an application undersection 39L(1)(a) —

(i) determine whether the developer is unable todeliver possession of the relevant unit or units

24

of housing accommodation or commercialproperty by the delivery date in question, andwhether the inability is to a material extentcaused by a COVID-19 event; and

5(ii) determine and certify the period at the end ofwhich the developer may reasonably beexpected to deliver possession; and

(b) in relation to an application undersection 39L(1)(b) —

10(i) determine whether any costs claimed by thepurchaser are qualifying costs and the amountof reimbursement that the purchaser is, undersection 39K, entitled to claim from thedeveloper; or

15(ii) where it is just and fair to do so, determine thatthe amount of reimbursement that the purchaseris entitled to claim under section 39K is instead,the aggregate of —

(A) the costs set out in paragraph (a) of the20definition of “qualifying costs” in

section 39G; and

(B) a prescribed percentage of the costsmentioned in sub-paragraph (A),

up to the prescribed amount mentioned in25section 39K(1)(a).

(2) The assessor’s certification under subsection (1)(a) —

(a) if made in relation to all the units in a housingaccommodation or commercial property— is bindingon the developer and the purchaser of each of those

30units; and

(b) if made in relation to any number of specified units inthe housing accommodation or commercialproperty — is binding on the developer and thepurchaser of each of those specified units.

25

(3) The assessor’s determination under subsection (1)(b) isbinding on the developer and the purchaser.

(4) There is no appeal from an assessor’s determination.

Regulations for this Part

5 39P.—(1) The Minister may make regulations for or withrespect to any matter that is required or permitted to beprescribed or that is necessary or convenient to be prescribed forcarrying out or giving effect to this Part.

(2) Without limiting subsection (1), regulations may be made10 for or with respect to —

(a) the procedure and practice for proceedings before anassessor, including requiring the proceedings to beheld in private and the treatment of confidentialinformation;

15 (b) the forms to be used and the information ordocuments to be furnished;

(c) the manner in which the Registrar of assessors or anassessor is to exercise his or her functions or performhis or her duties;

20 (d) the manner of service of any document and when it isdeemed served;

(e) the extension by the Registrar of assessors or anassessor of any time within which any document is tobe filed or furnished;

25 (f) the other fees to be paid in respect of an applicationunder section 39L(1);

(g) enabling the recovery by a party to an affectedagreement of an amount from the other party that waspaid before 2 November 2020 for any liability

30 extinguished under section 39I(7)(b); and

(h) exempting any person from any requirement underthis Part, whether in whole or in part.”.

26

New Part 10

9. The principal Act is amended by inserting, immediately aftersection 40, the following Part:

“PART 10

5FURTHER RELIEFS FOR SPECIFIED CONTRACTS

Division 1 — General

Interpretation of this Part

41. In this Part, unless the context otherwise requires —

“adjustment relief assessor” means a person appointed to10the panel of adjustment relief assessors under

section 64;

“adjustment relief Registrar” means the adjustment reliefRegistrar appointed under section 63(1), and includesany adjustment relief Deputy Registrar exercising the

15functions of the adjustment relief Registrar;

“assignee”, in relation to a person, includes a successor intitle of that person;

“contract of national interest” means a contract —

(a) the termination of which is likely to affect the20provision of essential services or the ability of

the Government or a public authority to carryout its functions, whether or not the Governmentor public authority is a party to the contract; and

(b) that is certified as a contract of national interest25under section 60;

“date of termination” means the day upon the expiry ofwhich a contract terminates;

“essential service” means any service essential to thenational security, defence, foreign relations, economy,

30public health, public safety or public order of Singapore,and includes the matters specified in Part 2 of theSecond Schedule;

27

“negotiation period”, in relation to any of the followingnotices, means the period of 4 weeks after the date of thenotice:

(a) a notice of negotiation;

5 (b) a notice of revision;

(c) a notice of negotiation for contract of nationalinterest;

“notice for adjustment” means a notice for adjustmentunder section 47;

10 “notice for compensation” means a notice forcompensation under section 51;

“notice for repricing” means a notice for repricing undersection 61(2);

“notice of negotiation”means a notice of negotiation under15 section 45;

“notice of negotiation for contract of national interest”means a notice of negotiation for contract of nationalinterest under section 61(1);

“notice of objection” means a notice of objection under20 section 46 or 54, as the case may be;

“notice of revision” means a notice of revision undersection 53;

“party” means a party to a contract, and “parties” isconstrued accordingly;

25 “public authority” means a body established by or under apublic Act to perform or discharge a public function;

“service period”, in relation to any notice that may beserved under this Part, means the period of 3 daysbeginning on the date of the notice;

30 “specified contract” means a contract described insection 42(1).

28


42.—(1) This Part applies in relation to any contract(including one to which the Government is a party) that —

(a) is described in Part 1 of the Second Schedule;

5(b) was entered into before 25 March 2020; and

(c) is governed by Singapore law,

and where at least one of the parties has a place of business inSingapore.

(2) This Part does not apply to any contract terminated before102 November 2020, or where the notice for the termination of the

contract was given in accordance with the contract before2 November 2020, even if the period of the notice expires on orafter that date.

(3) In section 43(1), A does not include a PTO’s landlord of15prescribed property mentioned in section 19P(1), if the PTO has

elected to pay the moneys referred to in section 19P(1) inrelation to the PTO’s lease agreement for the prescribedproperty, in accordance with a statutory repayment scheduledescribed in section 19P(2).

20Reliefs under this Part

43.—(1) Where —

(a) a party to the specified contract (called in this Part A)satisfies the requirements in Part 3 of the SecondSchedule; and

25(b) the specified contract is not a contract of nationalinterest,

then —

(c) A may seek, in accordance with Division 2, tonegotiate with the other party or parties (as the case

30may be) (each called in this Part B) for an adjustmentto the rights and obligations of the parties and theirassignees under the specified contract; and

29

(d) if A is unsuccessful in so negotiating an adjustment,the specified contract terminates in accordance withthat Division.

(2) Where the specified contract terminates in accordance with5 Division 2, then, despite anything in the specified contract, the

rights and obligations of the parties and their assignees under thespecified contract are adjusted in accordance with Part 4 of theSecond Schedule, subject to any adjustment on a just and fairbasis by an adjustment relief assessor under section 66.

10 (3) Where —

(a) the specified contract is one that is described in Part 1of the Third Schedule; and

(b) A seeks a negotiation under subsection (1),

then, if B satisfies the requirements in Part 2 of the Third15 Schedule, B may require, in accordance with Division 3,

compensation from A for any termination of the specifiedcontract in accordance with Division 2.

(4) The compensation under subsection (3) —

(a) is determined in accordance with the prescribed20 factors; and

(b) is in addition to, and does not affect, the rights andobligations of the parties and their assignees asadjusted under subsection (2).

(5) Where —

25 (a) the specified contract is one that is described in Part 1of the Fourth Schedule; and

(b) A satisfies the requirements in Part 2 of the FourthSchedule,

then A, instead of seeking a negotiation under subsection (1),30 may seek, in accordance with Division 4, to revise the schedule

of A’s repayments under the specified contract.

(6) Nothing in this section prevents any party from terminatingor avoiding the specified contract on or after 2 November 2020

30

under any other written law or rule of law, if the specifiedcontract is not yet terminated under section 49.

(7) Where the specified contract is terminated on or after2 November 2020 under any other written law or rule of law but

5before the specified contract can be terminated in accordancewith Division 2, then, despite anything in the specifiedcontract —

(a) any party (called in this Part C) that satisfies therequirements of Part 3 of the Second Schedule may

10seek, in accordance with Division 5, for the rights andobligations of the parties and their assignees under thespecified contract to be adjusted in accordance withPart 4 of the Second Schedule (subject to anyadjustment on a just and fair basis by an adjustment

15relief assessor under section 66), as if the terminationwere a termination in accordance with Division 2; and

(b) where the specified contract is one that is described inPart 1 of the Third Schedule, any other party whosatisfies the requirements in Part 2 of the Third

20Schedule may require, in accordance with Division 3,compensation from C; and that Division applies withthe necessary modifications for this purpose.

(8) To avoid doubt, a reference to a termination of thespecified contract in subsection (6) includes the discharge of

25the specified contract for the repudiation of the specifiedcontract by one of the parties, but does not include —

(a) where the specified contract is a term contract, atermination of the specified contract upon the expiryof the term without a renewal of the specified

30contract; or

(b) an automatic termination of the specified contractupon the occurrence of an event and not by any act onthe part of any party.

31

Moratorium

44.—(1) Part 2 of the Fifth Schedule applies where, in relationto a specified contract —

(a) a notice of negotiation is served in accordance with5 section 45 (including that section as applied by

Division 5); or

(b) a notice of revision is served in accordance withsection 53.

(2) Without affecting paragraph 12 of Part 2 of the Fifth10 Schedule, any person who, without reasonable excuse,

contravenes paragraph 1 of Part 2 of the Fifth Schedule shallbe guilty of an offence and shall be liable on conviction to a finenot exceeding $1,000.

Division 2 — Renegotiation and termination of contracts

15 Notice of negotiation

45.—(1) Where A seeks to negotiate for an adjustment to therights and obligations of the parties and their assignees under thespecified contract pursuant to section 43(1), A must serve anotice of negotiation on all the persons in subsection (2), in

20 accordance with subsection (3).

(2) The persons for the purpose of subsection (1) are all of thefollowing:

(a) any other party to the specified contract;

(b) any person who is A’s guarantor or surety, or who has25 issued any performance bond or equivalent, in

relation to any of A’s obligations under thespecified contract;

(c) any assignee of any other party to the specifiedcontract.

30 (3) A must serve the notice of negotiation on all the persons insubsection (2) —

32

(a) within 6 weeks, or such longer period as the Ministermay determine by order in the Gazette, after —

(i) the date of commencement of section 9 of theCOVID-19 (Temporary Measures)

5(Amendment No. 3) Act 2020; or

(ii) where A seeks a negotiation under section 43(1)pursuant to a change in the substance of Part 1or 3 of the Second Schedule, the date ofcommencement of the amendment effecting

10the change; and

(b) within the service period for that notice.

Notice of objection

46.—(1) Where B or B’s assignee (as the case may be) wishesto object to A’s notice of negotiation, B or B’s assignee must —

15(a) serve a notice of objection on A and all the persons insection 45(2) (but not on B or B’s assignee (as the casemay be) making the objection) —

(i) within the period of 2 weeks after thenegotiation period for A’s notice of

20negotiation; and

(ii) within the service period for that notice; and

(b) lodge the notice of objection with the adjustmentrelief Registrar within the period in paragraph (a)(i).

(2) B or B’s assignee (as the case may be) may only object to25A’s notice of negotiation on any one or more of the following

grounds:

(a) the contract in question is not a specified contract or isa contract of national interest;

(b) A does not satisfy the requirements in Part 3 of the30Second Schedule;

(c) the notice of negotiation was not served in accordancewith section 45.

33

(3) The adjustment relief Registrar may refuse to accept thenotice of objection for lodgment and proceed under section 65if —

(a) the notice of objection was not served and lodged in5 accordance with subsection (1); or

(b) B or B’s assignee (as the case may be) fails or refusesto provide any information or document reasonablyrequired by the adjustment relief Registrar.

Notice for adjustment

10 47.—(1) If no notice of objection is served in accordance withsection 46, A, B or B’s assignee (as the case may be) may, within2 weeks after the period in section 46(1)(a)(i), lodge a notice foradjustment with the adjustment relief Registrar for the purposeof adjusting the rights and obligations of the parties and their

15 assignees in accordance with Part 4 of the Second Schedule (oron a just and fair basis).

(2) The notice for adjustment must be served by the personlodging that notice with the adjustment relief Registrar, on A andall the persons in section 45(2) (but not on the person lodging

20 that notice with the adjustment relief Registrar) —

(a) within the period in subsection (1); and


Withdrawal of notices

48.—(1) A may, at any time before the earlier of —

25 (a) the termination of the specified contract undersection 49; or

(b) the date of determination of an adjustment reliefassessor concerning the date of termination of thespecified contract,

30 withdraw A’s notice of negotiation by serving a notice ofwithdrawal of the notice of negotiation on all the other parties

34

and their assignees within the service period for that notice ofwithdrawal.

(2) Where B or B’s assignee has served a notice of objection onA, A must also lodge that notice of withdrawal with the

5adjustment relief Registrar within the service period for thatnotice of withdrawal.

(3) B or B’s assignee (as the case may be) may, at any timebefore the earlier of —

(a) the termination of the specified contract under10section 49; and

(b) the date of determination of an adjustment reliefassessor concerning the date of termination of thespecified contract,

withdraw its notice of objection by —

15(c) serving a notice of withdrawal of the notice ofobjection on A and the other parties and theirassignees (but not on the person that made theobjection), within the service period for that noticeof withdrawal; and

20(d) lodging that notice of withdrawal with the adjustmentrelief Registrar within the service period for thatnotice of withdrawal.

(4) A, B or B’s assignee (as the case may be) may, at any timebefore an adjustment relief assessor makes a determination

25concerning the adjustments to be made to the rights andobligations of the parties and their assignees, withdraw itsnotice for adjustment by —

(a) serving a notice of withdrawal of the notice foradjustment on A, B and B’s assignee (but not on the

30person that requested the adjustment) within theservice period for that notice of withdrawal; and

(b) lodging that notice of withdrawal with the adjustmentrelief Registrar within the service period for thatnotice of withdrawal.

35

Time of termination of contract

49.—(1) Subject to subsection (4), if no notice of objection isserved in accordance with section 46(1)(a), and lodged with theadjustment relief Registrar under section 46(1)(b), then the

5 specified contract terminates upon the expiry of the second dayafter the period mentioned in section 46(1)(a)(i), or such othertime as agreed between all the parties.

(2) Subject to subsection (4), if —

(a) the adjustment relief Registrar refuses to accept any10 notice of objection for lodgment pursuant to

section 46(3); or

(b) every notice of objection served and lodged iswithdrawn under section 48(3),

then the specified contract terminates upon the expiry of the15 second day after the period mentioned in section 46(1)(a)(i).

(3) Subject to subsection (4), if an adjustment relief assessorappointed by the adjustment relief Registrar for the purposes ofdetermining any matter concerning the specified contract,determines a date of termination for the specified contract,

20 then the specified contract terminates upon the expiry of thatday.

(4) To avoid doubt, if a specified contract is terminated underany other written law or rule of law (subject to the modificationsspecified in Division 5), nothing in this section alters the date of

25 termination of the specified contract as provided under that otherwritten law or rule of law.

Effect of certificate

50. To avoid doubt, section 49 —

(a) does not apply to a specified contract that is a contract30 of national interest; but

(b) applies to a specified contract before a certificate isissued to one of the parties by the Minister or an

36

authorised officer under section 60, certifying it to bea contract of national interest.

Division 3 — Compensation for landlords

Notice for compensation

551.—(1) Where B seeks compensation from A pursuant tosection 43(3), B must —

(a) serve a notice for compensation on A within 2 weeksafter the negotiation period for A’s notice ofnegotiation; and

10(b) lodge that notice for compensation with theadjustment relief Registrar within the period inparagraph (a).

(2) The adjustment relief Registrar may refuse to accept thenotice for compensation for lodgment if —

15(a) the notice for compensation was not served andlodged in accordance with subsection (1); or

(b) B fails or refuses to provide any information ordocument reasonably required by the adjustmentrelief Registrar.

20(3) To avoid doubt, nothing in this Part prevents B fromserving both a notice of objection under section 46 and a noticefor compensation on A.

Withdrawal of notice for compensation

52. B may, at any time before an adjustment relief assessor25makes a determination concerning the compensation sought by

B, withdraw B’s notice for compensation by —

(a) serving a notice of withdrawal of the notice forcompensation on A; and

(b) lodging that notice of withdrawal with the adjustment30relief Registrar within 2 days after the date of the

service of that notice of withdrawal on A.

37

Division 4 — Revision of repayment schedule

Notice of revision of repayment schedule

53.—(1) Where A seeks a revision of the repayment schedulepursuant to section 43(5), Amust serve a notice of revision on all

5 the persons in subsection (2), in accordance with subsections (3)and (4).

(2) The persons for the purpose of subsection (1) are all of thefollowing:

(a) B and B’s assignees;

10 (b) any person who is A’s guarantor or surety, or who hasissued any performance bond or equivalent, inrelation to any of A’s obligations under thespecified contract.

(3) A must serve the notice of revision on all the persons in15 subsection (2) —

(a) within 6 weeks, or such longer period as the Ministermay determine by order in the Gazette, after —

(i) the date of commencement of section 9 of theCOVID-19 (Temporary Measures)

20 (Amendment No. 3) Act 2020; or

(ii) where A seeks to revise the repayment scheduleunder subsection (1) pursuant to a change in thesubstance of Part 1 or 2 of the Fourth Schedule,the date of commencement of the amendment

25 effecting the change; and


(4) The notice of revision must set out the revised repaymentschedule proposed by A that satisfies the followingrequirements:

30 (a) the amount covered by A’s revised repaymentschedule must include, and only include —

(i) moneys that became payable under thespecified contract on or after 1 February 2020

38

and before the date of the notice of revision, andthat remain unpaid on that date;

(ii) any interest imposed on any late payment of themoneys in sub-paragraph (i) (determined in

5accordance with section 7A, where section 7Aapplies), accruing before the date of the noticeof revision; and

(iii) interest on the amounts in sub-paragraphs (i)and (ii) at the prescribed rate;

10(b) the period of repayment must not exceed 18 months;

(c) the amount covered by A’s revised repaymentschedule must be payable in equal instalments, on amonthly basis;

(d) the first instalment must be payable within one month15after the period of 6 weeks, or such longer period as

the Minister may determine by order in the Gazette,after the date of commencement of section 9 of theCOVID-19 (Temporary Measures) (AmendmentNo. 3) Act 2020.

20(5) To avoid doubt —

(a) the period of repayment in subsection (4)(b) mayextend beyond the period provided in the specifiedcontract for repayment; and

(b) upon service of the notice of revision, A cannot be25required to pay any other interest or charge (however

described) on the moneys mentioned insubsection (4)(a)(i) and (ii), that might be payableunder the specified contract after the date of the noticeof revision.

30Notice of objection

54.—(1) Where B or B’s assignee (as the case may be) wishesto object to A’s revision of the repayment schedule, B or B’sassignee must —

39

(a) serve a notice of objection on A and all the persons insection 53(2)(b) —

(i) within the period of 2 weeks after thenegotiation period for A’s notice of revision;

5 and

(ii) within the service period for that notice; and

(b) lodge the notice of objection with the adjustmentrelief Registrar within the period in paragraph (a)(i).

(2) B or B’s assignee (as the case may be) may only object to10 A’s revision of the repayment schedule on any one or more of the

following grounds:

(a) the contract in question is not a specified contractdescribed in Part 1 of the Fourth Schedule;

(b) A does not satisfy the requirements in Part 2 of the15 Fourth Schedule;

(c) the notice of revision was not served in accordancewith section 53;

(d) A’s proposed revised repayment schedule does notsatisfy the requirements in paragraphs (a) to (d) of

20 section 53(4).

(3) The adjustment relief Registrar may refuse to accept thenotice of objection for lodgment if —

(a) the notice of objection was not served and lodged inaccordance with subsection (1); or

25 (b) B or B’s assignee (as the case may be) fails or refusesto provide any information or document reasonablyrequired by the adjustment relief Registrar.

(4) Pending the determination of an adjustment relief assessoron the validity of any objection by B or B’s assignee (as the case

30 may be), A may make the payments in accordance with A’sproposed revised repayment schedule.

40

Withdrawal of notice

55. B or B’s assignee (as the case may be) may, at any timebefore an adjustment relief assessor makes a determinationconcerning A’s proposed revision to the repayment schedule,

5withdraw its notice of objection by —

(a) serving a notice of withdrawal of the notice ofobjection on A, and B and B’s assignees (but not onthe person making the withdrawal), within the serviceperiod for that notice of withdrawal; and

10(b) lodging that notice of withdrawal with the adjustmentrelief Registrar within the service period for thatnotice of withdrawal.

Revised repayment schedule to form part of specifiedcontract

1556. Where —

(a) B and B’s assignees do not object to A’s proposedrevised repayment schedule under section 54(1);

(b) the adjustment relief Registrar refuses to accept anynotice of objection for lodgment under section 54(3);

20(c) every notice of objection served and lodged iswithdrawn under section 55; or

(d) the adjustment relief assessor dismisses all of B’s andB’s assignees’ objections,

then —

25(e) the revised repayment schedule forms part of thespecified contract as from the date of the notice ofrevision, and prevails over any term of the specifiedcontract to the extent of any inconsistency betweenthem; and

30(f) A is discharged from any liability to pay any interestor charge mentioned in section 53(5)(b).

41

Time when revised repayment schedule ceases to apply

57.—(1) Where —

(a) A fails to pay any instalment under the revisedrepayment schedule within 14 days after the date on

5 which the instalment is due to be paid under therevised repayment schedule;

(b) A terminates or repudiates the specified contractduring the period covered by the revised repaymentschedule; or

10 (c) B terminates the specified contract for any default byA other than a failure mentioned in paragraph (a),

then the revised repayment schedule ceases to have effect andthe following become payable immediately (called in thissection the outstanding repayments):

15 (d) the amount of any instalment payable under therevised repayment schedule before the date of theoccurrence of the event in paragraph (a), (b) or (c) (asthe case may be) and that remains unpaid on that date;

(e) the instalments payable under the revised repayment20 schedule on or after that date, excluding the amount in

section 53(4)(a)(iii) that is part of those instalments.

(2) As from and including the date of the occurrence of theevent in subsection (1)(a), (b) or (c) (as the case may be), theoutstanding repayments are subject to all interest and other late

25 payment charges (however described) stipulated under thespecified contract until the date that the outstandingrepayments are repaid.

Passing of title to goods

58. Despite anything in the specified contract, title to any30 goods that are the subject of the specified contract passes to A

when A has paid all moneys required to be paid by A under thisDivision.

42

Division 5 — Adjustment of rights and obligations forterminated contract

Adjustment of rights and obligations for terminatedcontract

559.—(1) Cmay seek to adjust the rights and obligations of theparties and their assignees under the terminated contract inaccordance with Division 2.

(2) For the purpose of subsection (1) —

(a) sections 45 to 48 apply, with each reference to A read10as a reference to C, and each reference to B read as a

reference to any other party to the terminatedcontract;

(b) the ground of objection in section 46(2)(a) that thecontract is of national interest is omitted;

15(c) despite section 48(1), C may withdraw its notice ofnegotiation at any time before the date ofdetermination by an adjustment relief assessorconcerning whether C satisfies the requirements ofPart 3 of the Second Schedule, by serving the notice

20of withdrawal of the notice of negotiation in themanner described in section 48(1); and

(d) despite section 48(3), any other party or its assignee(as the case may be) may withdraw its notice ofobjection at any time before the date of determination

25by an adjustment relief assessor concerning whetherthere is any valid ground of objection to C’s notice ofnegotiation, by serving and lodging the notice ofwithdrawal in the manner described in section 48(3).

(3) To avoid doubt, the fact that the specified contract is30terminated under any other written law or rule of law before

section 45 can be applied does not prevent sections 45 to 48 (asmodified) from applying to C, and the other parties and theirassignees to the terminated contract.

43

(4) To avoid doubt, where a notice under Division 2 is servedor lodged before the specified contract is terminated asmentioned in section 43(6), those notices are treated as if theyhad been served or lodged for the purposes of this Division.

5 Division 6 — Contracts of national interest

Certification of contract of national interest

60.—(1) The Minister charged with the responsibility underArticle 30 of the Constitution of the Republic of Singapore forthe subject to which a specified contract relates may, on the

10 Minister’s own motion or at the request of any party to thespecified contract, certify that the specified contract is a contractof national interest.

(2) The Minister may authorise any public officer to certifyany specified contract as a contract of national interest under

15 subsection (1) on the Minister’s behalf.

(3) For the purpose of issuing a certificate under this section,the Minister or authorised officer may by written notice requireany person to provide the Minister or authorised officer withsuch information or document as the Minister or authorised

20 officer may require, within the time specified in the notice.

(4) Except where the person so notified is under a statutoryobligation to observe secrecy in relation to the information ordocument sought, the person must comply with the notice.

(5) A person who, without reasonable excuse, fails to comply25 with subsection (4) shall be guilty of an offence and shall be

liable on conviction to a fine not exceeding $1,000.

(6) It is not a defence to a charge under subsection (5) for aperson’s failure to provide any information or document soughtfrom the person under subsection (3), that the person is under a

30 duty of secrecy (other than a statutory duty of secrecy) in respectof the information or the contents of that document.

(7) A person who in good faith complies with the notice insubsection (3) is treated as not being in breach of that duty ofsecrecy despite any law or the terms of any contract.

44

(8) A certificate issued by the Minister or authorised officer inrespect of any specified contract is conclusive that the specifiedcontract is a contract of national interest.

Notice of negotiation for contract of national interest and5notice for repricing

61.—(1) Where a party to a specified contract that satisfies therequirements in Part 3 of the Second Schedule (called in this PartD) is issued with a certificate certifying that the specifiedcontract is a contract of national interest, D may at any time

10serve a notice of negotiation for contract of national interest onall the other parties to the specified contract and seek arenegotiation of the price of the specified contract during thenegotiation period for that notice of negotiation for contract ofnational interest.

15(2) Where the renegotiation fails, D may seek a repricing ofthe specified contract by —

(a) serving a notice for repricing on all the persons insubsection (3), in accordance with subsection (4); and

(b) lodging that notice with the adjustment relief20Registrar within the period in subsection (4)(a).

(3) The persons for the purpose of subsection (2)(a) are asfollows:

(a) any other party to the specified contract;

(b) any person who is D’s guarantor or surety, or who has25issued any performance bond or equivalent, in

relation to any of D’s obligations under thespecified contract;

(c) any assignee of any other party to the specifiedcontract.

30(4) D must serve the notice for repricing on the persons insubsection (3) —

45

(a) within the period of 2 weeks after the negotiationperiod for the notice of negotiation for contract ofnational interest; and

(b) within the service period for the notice of repricing.

5 Withdrawal of notice for repricing

62. D may, at any time before an assessor makes adetermination concerning the repricing of the specifiedcontract sought by D, withdraw D’s notice for repricing by —

(a) serving a notice of withdrawal of the notice for10 repricing on all the other parties and their assignees

within the service period for that notice ofwithdrawal; and

(b) lodging that notice of withdrawal with the adjustmentrelief Registrar within the service period for that

15 notice of withdrawal.

Division 7 — Adjustment relief assessor’s determination

Adjustment relief Registrar

63.—(1) The Minister is to appoint an adjustment reliefRegistrar of adjustment relief assessors, to carry out the duties

20 imposed on an adjustment relief Registrar under this Part.

(2) The Minister may in addition appoint adjustment reliefDeputy Registrars.

(3) Subject to regulations made under section 79, all thepowers and duties conferred and imposed on the adjustment

25 relief Registrar may be exercised by an adjustment relief DeputyRegistrar.

(4) The adjustment relief Registrar may, in any particular case,extend the time for service or lodgment of any notice under thisPart.

46

Panel of adjustment relief assessors

64. The Minister must appoint a panel of adjustment reliefassessors comprising such number of persons who satisfy therequirements prescribed for the purposes of this section, for the

5purpose of making the determinations in section 66.

Appointment of adjustment relief assessors

65.—(1) Where, in relation to any specified contract, theadjustment relief Registrar has accepted for lodgment —

(a) any notice of objection pursuant to section 46(1)10(including that section as applied by Division 5);

(b) any notice for adjustment pursuant to section 47(1)(including that section as applied by Division 5);

(c) any notice for compensation pursuant tosection 51(1);

15(d) any notice of objection pursuant to section 54(1); or

(e) any notice for repricing pursuant to section 61(2),

then, the adjustment relief Registrar must appoint an adjustmentrelief assessor to make the determination or determinations insection 66 in relation to the specified contract.

20(2) Where, in relation to any specified contract, the adjustmentrelief Registrar —

(a) has refused to accept any notice of objection forlodgment under section 46(3); or

(b) any notice of objection lodged pursuant to25section 46(1) has been withdrawn,

then, if any determination is required to be made by anadjustment relief assessor for the adjustment of the rights andobligations of the parties and their assignees, the adjustmentrelief Registrar must appoint an adjustment relief assessor to

30make the determination.

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Adjustment relief assessor’s determinations

66.—(1) For a notice of objection lodged under section 46, theadjustment relief assessor —

(a) must determine whether there is any valid ground of5 objection; and

(b) if there is no valid ground of objection, must —

(i) determine the date of termination of the contractin accordance with section 49; and

(ii) determine the adjustment of the rights and10 obligations of the parties and their assignees in

accordance with Part 4 of the Second Scheduleor, where it is just and fair to do so, in any waydifferent from the manner set out in Part 4 of theSecond Schedule.

15 (2) In making a determination under subsection (1)(a), theadjustment relief assessor may take into account a ground notstated in the notice of objection.

(3) In making a determination under subsection (1)(b)(i), theadjustment relief assessor may take into account any date

20 proposed by any party as the date of termination.

(4) The determinations under subsection (1)(a) and (b)(i) and(ii) need not be made together on the same day.

(5) Nothing in subsection (1) prevents an adjustment reliefassessor from making the determinations in subsection (1)(b)

25 without first determining whether the contract in question isgoverned by Singapore law.

(6) For a notice for adjustment lodged under section 47, theadjustment relief assessor —

(a) must determine whether there is any valid ground of30 objection; and

(b) if there is no valid ground of objection, mustdetermine the adjustment of the rights andobligations of the parties and their assignees in

48

accordance with Part 4 of the Second Schedule or,where it is just and fair to do so, in any way differentfrom the manner set out in Part 4 of the SecondSchedule.

5(7) For a notice for compensation lodged under section 51, theadjustment relief assessor must —

(a) determine whether —

(i) the specified contract is one that is described inPart 1 of the Third Schedule; and

10(ii) B satisfies the requirements in Part 2 of theThird Schedule; and

(b) if the requirements in paragraph (a) are satisfied,further determine the amount of compensationpayable by A to B.

15(8) For a notice of objection lodged under section 54, theadjustment relief assessor must —

(a) determine whether there is any valid ground ofobjection; and

(b) where the adjustment relief assessor determines that20the only valid objection is that A’s proposed revised

repayment schedule does not satisfy any requirementin paragraphs (a) to (d) of section 53(4), determinewhat the revised repayment schedule should be.

(9) In making a determination under subsection (8)(a), the25adjustment relief assessor may take into account a ground not

stated in the notice of objection.

(10) For a notice for repricing lodged under section 61, anadjustment relief assessor must determine —

(a) whether D satisfies the requirements in Part 3 of the30Second Schedule; and

(b) whether the contract should be repriced and, if so, theprice to be applied to the contract.

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(11) Where section 65(2) applies, the adjustment reliefassessor must determine the adjustment of the rights andobligations of the parties and their assignees in accordancewith Part 4 of the Second Schedule or, where it is just and fair to

5 do so, in any way different from the manner set out in Part 4 ofthe Second Schedule.

Subsequent determinations

67.—(1) After an adjustment relief assessor has made adetermination under section 66, the adjustment relief assessor

10 or another adjustment relief assessor may, either on his or herown motion or on the application of all or any of the persons towhom the adjustment relief assessor’s determination relates —

(a) vary or replace the determination if —

(i) one of those persons adduces further15 information or documents after the

determination which would have a materialinfluence on the determination but which couldnot have with reasonable diligence beenobtained for use at the proceedings before the

20 adjustment relief assessor prior to thedetermination; and

(ii) it is just and fair for a variation or replacementof the determination to be made undersubsection (1);

25 (b) where one of those persons is required by thedetermination to make any payment — grant thatperson an extension of time to make the payment ordetermine that the person make the payment ininstalments; or

30 (c) undertake a further review of the matter and make anyfurther determination as is appropriate to achieve ajust and fair outcome.

(2) In considering whether it is just and fair for a variation orreplacement of the determination to be made under

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subsection (1)(a), or whether to make any further determinationunder subsection (1)(c), the adjustment relief assessor must takeinto account the following factors:

(a) whether there has been any undue delay in the making5of the application for a subsequent determination

under subsection (1);

(b) whether any person has taken any action in relianceon the determination.

Enforcement of adjustment relief assessor’s10determinations

68.—(1) The determinations under sections 66 and 67 may,with leave of the court, be enforced in the same manner as ajudgment or an order of the court to the same effect.

(2) Where leave of the court is so granted, judgment may be15entered in the terms of the determinations.

(3) The determinations are binding on all the parties and theirassignees to the specified contract in question and all otherpersons claiming under or through them.

(4) There is no appeal from the determinations.

20(5) A person who, without reasonable excuse, fails to complywith any determination binding on the person shall be guilty ofan offence and shall be liable on conviction to a fine notexceeding $1,000.

No representation by advocate and solicitor

2569. No party or assignee may be represented by an advocateand solicitor at proceedings before an adjustment relief assessor,except with the permission of the adjustment relief assessor.

Costs

70. Each party or assignee must bear the party’s or assignee’s30own costs for proceedings before an adjustment relief assessor.

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Confidentiality of proceedings

71.—(1) This section applies to the following information:

(a) any statement or document submitted, created ormade for the purposes of a proceeding before an

5 adjustment relief assessor;

(b) any information (whether written or oral) that isdisclosed in the course of the proceeding.

(2) A person who is a party to the proceeding must not discloseto any other person any information in subsection (1), except—

10 (a) with the consent of the person to whom theinformation relates;

(b) to the extent that the information is already in thepublic domain;

(c) to the extent that the disclosure is necessary for the15 purposes of, or in connection with, the proceeding, the

enforcement of an adjustment relief assessor’sdetermination, or any proceeding before a court oran arbitral tribunal; or

(d) to the extent that the disclosure is required for any20 purpose under this Act.

(3) A person who contravenes subsection (2) shall be guilty ofan offence and shall be liable on conviction to a fine notexceeding $1,000.

(4) Where there is a contravention of subsection (2), a person25 who has suffered loss or damage as a result of the contravention

has a right of action against the person who contravenes thatsubsection.

(5) The types of relief the court may grant in an action undersubsection (4) include an injunction and damages.

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Adjustment relief Registrar and adjustment reliefassessors treated as public servants

72. The adjustment relief Registrar or an adjustment reliefassessor who, in the course of his or her duties under this Part,

5exercises any power as such, is treated as a public servant for thepurposes of the Penal Code (Cap. 224) when exercising suchpower.

Protection from liability

73. No liability shall lie against the adjustment relief Registrar10or an adjustment relief assessor with respect to anything done or

omitted to be done in good faith and with reasonable care in thedischarge or purported discharge of the adjustment reliefRegistrar’s or adjustment relief assessor’s functions and dutiesunder this Part.

15Division 8 — Miscellaneous

Form of notices, etc.

74.—(1) All notices required to be served or lodged under thisPart must be in the prescribed form, and include the supportingdocuments prescribed (if any) for the notice.

20(2) Without affecting subsection (1), all notices lodged withthe adjustment relief Registrar must also be lodged with anyinformation prescribed for the lodgment of the notice.

(3) To avoid doubt, a notice that is required to be served orlodged under this Part is not so served or lodged if it is not in the

25prescribed form, does not include any of the supportingdocuments prescribed for it or is not lodged with theprescribed information, as the case may be.

(4) To avoid doubt, the withdrawal of any notice under thisPart does not prevent another of such notice of the type

30withdrawn being served and lodged, if such notice may beserved and lodged in accordance with the requirements of thisPart.

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Confidentiality of information and documents served

75.—(1) A person who is served with any notice under thisPart must not disclose to any other person any information in orsupporting document served with the notice, except —

5 (a) with the consent of the person to whom theinformation or document relates;

(b) to the extent that the information or document isalready in the public domain;

(c) to the extent that the disclosure is necessary for the10 purposes of, or in connection with, any proceeding

before an adjustment relief assessor, the enforcementof an adjustment relief assessor’s determination, orany proceeding before a court or an arbitral tribunal;or

15 (d) to the extent that the disclosure is required for anypurpose under this Act.

(2) A person who contravenes subsection (1) shall be guilty ofan offence and shall be liable on conviction to a fine notexceeding $1,000.

20 (3) Where there is a contravention of subsection (1), a personwho has suffered loss or damage as a result of the contraventionhas a right of action against the person who contravenes thesubsection.

(4) The types of relief the court may grant in an action under25 subsection (3) include an injunction and damages.

False declaration, etc.

76. A person who —

(a) makes any declaration or statement, or provides anyinformation or document, under or for the purposes of

30 this Part that is false or misleading in a materialparticular; and

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(b) knows or ought reasonably to know that, or is recklessas to whether, the declaration, statement, informationor document is false or misleading in a materialparticular,

5shall be guilty of an offence and shall be liable on conviction to afine not exceeding $5,000 or to imprisonment for a term notexceeding 12 months or to both.

Proceedings under other Acts

77. The service by a person on any other person of any notice10under this Part, and any proceedings before an adjustment relief

assessor under this Part, are not treated as proceedings for thepurposes of the following provisions:

(a) section 210(10) of the Companies Act (Cap. 50);

(b) sections 64(1)(c) and (8)(c), 65(1)(c), 95(1)(c),1596(4)(c), 129, 133(1), 170(2), 248, 276(3), 293(1)

and 327(1)(c) of the Insolvency, Restructuring andDissolution Act 2018 (Act 40 of 2018);

(c) repealed sections 211B(1)(c) and (8)(c), 211C(1)(c),227C(c), 227D(4)(c), 258, 262(3), 299(2) and 353 of

20the Companies Act, to the extent that they continue toapply under section 526 of the Insolvency,Restructuring and Dissolution Act 2018;

(d) sections 45(3), 56F(1) and 76(1)(c) of the repealedBankruptcy Act (Cap. 20), to the extent that they

25continue to apply under section 525 of the Insolvency,Restructuring and Dissolution Act 2018;

(e) any other prescribed written law.

Amendment of Second, Third, Fourth and Fifth Schedules

78.—(1) The Minister may, by order in the Gazette, at any30time in the period of 2 months after the date of commencement

of section 9 of the COVID-19 (Temporary Measures)(Amendment No. 3) Act 2020, amend the Second, Third,Fourth or Fifth Schedule.

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(2) Where, as a result of an amendment undersubsection (1) —

(a) a contract ceases to be a specified contract underPart 1 of the Second Schedule, Part 1 of the Third

5 Schedule or Part 1 of the Fourth Schedule; or

(b) a party to a specified contract ceases to satisfy therequirements in Part 3 of the Second Schedule, Part 2of the Third Schedule or Part 2 of the FourthSchedule,

10 the relevant provisions of this Part continue to apply in relationto the contract or the person if, before the date on which theamendment comes into operation —

(c) a notice of negotiation has been served undersection 45 on any one of the parties to the contract;

15 (d) a notice for compensation has been served undersection 51 on A;

(e) a notice of revision has been served under section 53on B; or

(f) a notice of negotiation for contract of national interest20 has been served under section 61(1) on any one of the

other parties to the contract,

as the case may be.

(3) The Minister may, in the order, make any saving andtransitional provisions that may be necessary or expedient.

25 Regulations for this Part

79.—(1) The Minister may make regulations for or withrespect to any matter that is required or permitted to beprescribed or that is necessary or convenient to be prescribed forcarrying out or giving effect to this Part (including the Second,

30 Third, Fourth and Fifth Schedules).

(2) Without limiting subsection (1), regulations may be madefor or with respect to —

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(a) the forms to be used for any notice or other documentrequired to be served or lodged under this Part;

(b) any supporting documents that must be served orlodged together with any notice under this Part;

5(c) where any notice may be served under this Part, anyother person (in addition to the persons specified inthis Part) on whom the notice must be served;

(d) the manner of service of any document and when it isdeemed served;

10(e) the procedure and practice for a proceeding before anadjustment relief assessor, including requiring theproceeding to be held in private and the treatment ofconfidential information;

(f) the manner in which the adjustment relief Registrar or15an adjustment relief assessor is to exercise his or her

functions or perform his or her duties;

(g) the extension by the adjustment relief Registrar or anadjustment relief assessor of any time within whichany document is to be filed or furnished;

20(h) the fees and charges and their method of payment forthe purposes of this Part; and

(i) the prescribing of any matter that may be prescribedunder this Part or the Second, Third, Fourth or FifthSchedule.”.

25Renaming of Schedule and new Second, Third, Fourth andFifth Schedules

10. The principal Act is amended by renaming the existingSchedule as the First Schedule, and by inserting immediatelythereafter the following Schedules:

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“SECOND SCHEDULESections 41, 42(1), 43(1), (2) and (7),45(3), 46(2), 47(1), 59(2), 61(1), 66(1),(6), (10) and (11), 78(1) and (2) and 79and Third, Fourth and Fifth Schedules

TERMINATION OF SPECIFIED CONTRACTS

PART 1

DESCRIPTION OF CONTRACTS

1. Subject to paragraphs 2 and 3, a contract is a specified contract if it is oris substantially in the nature of any of the following:

(a) a lease or licence for any non-residential immovable property inSingapore;

(b) a hire-purchase agreement or conditional sale agreement asdefined in the Hire-Purchase Act (Cap. 125) where —

(i) the good hired or conditionally sold under the agreement iscommercial equipment; and

(ii) the agreement is not entered into with a bank licensed underthe Banking Act (Cap. 19) or a finance company licensedunder the Finance Companies Act (Cap. 108);

(c) a lease of commercial equipment;

(d) a contract for the supply of any goods;

(e) a contract for the supply of any services.

2. Despite paragraph 1, the following are not specified contracts:

(a) any contract where —

(i) one party to the contract acts primarily in the capacity of aconsumer in that the party neither makes the contract in thecourse of a business nor holds itself out as doing so;

(ii) the other party makes the contract in the course of abusiness; and

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(iii) in the case of a contract governed by the law of sale of goodsor hire-purchase, or by section 7 of the Unfair ContractTerms Act (Cap. 396), the goods passing under or inpursuance of the contract are of a type ordinarily supplied forprivate use or consumption,

except that, in a sale by auction or by competitive tender, the buyeris not in any circumstances regarded as acting in the capacity of aconsumer;

(b) any contract of service as defined in section 2(1) of theEmployment Act (Cap. 91);

(c) any construction contract as defined in section 2 of the Buildingand Construction Industry Security of Payment Act (Cap. 30B);

(d) any supply contract as defined in section 2 of the Building andConstruction Industry Security of Payment Act;

(e) a lease or licence for any non-residential immovable property for aterm exceeding 5 years;

(f) any contract for the carriage of goods for freight by sea, land or air,including any contract for freight forwarding and logistic services;

(g) any contract for the supply, storage, transportation, collection,treatment or disposal of hazardous materials;

(h) any contract made in connection with a financial transaction, or forthe supply of financial services, including but not limited to thefollowing financial services:

(i) banking and financing services, such as cash withdrawal anddeposits, financial leasing, financial guarantees and Islamicfinance;

(ii) hire-purchase financing services not within paragraph 1(b);

(iii) payments, money-transfer and money-changing services;

(iv) services provided by a capital markets infrastructure andpayments systems, such as clearing and settlement services;

(v) capital markets products broking, dealing, clearing,settlement, custodial and depository services;

(vi) insurance and reinsurance services;

(vii) financial advisory services;

(viii) fund raising and fund management services;

(ix) trust advisory and trust management services;

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(x) credit rating services;

(i) any contract (or series of contracts) to effect the transfer of a tradeor business or part thereof as a going concern;

(j) any commodity contract within the meaning of section 2 of theCommodity Trading Act (Cap. 48A);

(k) any contract for the factoring of receivables;

(l) any contract to which section 4 of the International Interests inAircraft Equipment Act (Cap. 144B) applies;

(m) any contract to which the Sale of Goods (United NationsConvention) Act (Cap. 283A) applies.

3. Where the parties to a specified contract have in respect of any rights orobligations under the specified contract, entered into —

(a) an arrangement or a compromise that is approved by the Courtunder section 210(4) of the Companies Act or section 71(1) of theInsolvency, Restructuring and Dissolution Act 2018; or

(b) a voluntary arrangement that is approved by creditors undersection 282 of the Insolvency, Restructuring and DissolutionAct 2018,

then, for so long as the arrangement or compromise is not set aside orrevoked, the specified contract (to the extent of those rights and obligations)is not a specified contract for the purposes of Part 10, and the arrangement orcompromise is also not a specified contract for the purposes of that Part.

4. In this Schedule —

“commercial equipment” means —

(a) any plant, machinery or fixed asset located in Singapore,where such plant, machinery or fixed asset is used formanufacturing, production or other business purposes; or

(b) a commercial vehicle;

“commercial vehicle” means a vehicle in Singapore that is —

(a) a goods vehicle as defined in section 2(1) of the Road TrafficAct (Cap. 276), but does not include agoods-cum-passengers vehicle as defined in rule 2(1) ofthe Road Traffic (Motor Vehicles, Registration andLicensing) Rules (Cap. 276, R 5);

(b) an excursion bus, an omnibus, a private bus, a private hirebus or a school bus as described in the Second Schedule tothe Road Traffic Act;

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(c) a private hire car as described in the Second Schedule to theRoad Traffic Act;

(d) a taxi as described in the Second Schedule to the RoadTraffic Act; or

(e) an engineering plant, such as a tractor, a road roller, anexcavator, a forklift, a dumper, a grader, a concrete pump, adozer, a loader, a skidder, a compactor, a scrapper, apipe-layer, a handcraft, a pax step or an airport serviceequipment;

“goods” means any movable or personal property but does not includechoses in action or money;

“hazardous material” means any material in the first column as definedin the Act specified opposite in the second column:

First column Second column

Material Act in which defined

1. Arms Arms and Explosives Act (Cap. 13)

2. Authorised military device

3. Electronic dart gun

4. Explosive

5. Explosive precursor

6. Gun

7. High explosives

8. Plastic explosive

9. Stun gun

10. Unmarked plastic explosive

11. Arm Arms Offences Act (Cap. 14)

12. Biological agent Biological Agents and Toxins Act(Cap. 24A)

13. Toxin

14. Scheduled chemical Chemical Weapons (Prohibition)Act (Cap. 37B)

15. Active ingredient Control of Vectors and PesticidesAct (Cap. 59)

16. Pesticide

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17. Vector repellent

18. Corrosive substance Corrosive and Explosive Substancesand Offensive Weapons Act(Cap. 65)

19. Explosive substance

20. Offensive weapon

21. Scheduled weapon

22. Dangerous fireworks Dangerous Fireworks Act (Cap. 72)

23. Explosive

24. Rocket firework

25. Sandcracker

26. Air impurities Environmental Protection andManagement Act (Cap. 94A)

27. Air pollution

28. Dark smoke

29. Hazardous substance

30. Sewage

31. Smoke

32. Toxic substance

33. Trade effluent

34. Dangerous substance Environmental Public Health Act(Cap. 95)

35. Garden refuse

36. Industrial waste

37. Stable refuse

38. Toxic industrial waste

39. Waste

40. Explosive substance Explosive Substances Act(Cap. 100)

41. Flammable material Fire Safety Act (Cap. 109A)

42. Petroleum

43. Household waste Hazardous Waste (Control ofExport, Import and Transit) Act(Cap. 122A)

44. Waste

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45. Hydrogen cyanide Hydrogen Cyanide (Fumigation)Regulations (Cap. 132, Rg 1)

46. Methyl bromide

47. Hydrogen phosphide

48. Fumigant

49. Irradiating apparatus Radiation Protection Act (Cap. 262).

50. Nuclear material

51. Radioactive material

52. Radioactive substance

53. Radioactive waste

54. Radionuclide

PART 2

ESSENTIAL SERVICES

1. The following services relating to energy:

(a) electricity generation, electricity transmission or electricitydistribution services;

(b) services for the supply or transmission of natural gas for electricitygeneration.

2. The following services relating to info-communications:

(a) fixed telephony services;

(b) mobile telephony services;

(c) broadband internet access services;

(d) national domain name registry services.

3. The following services relating to water:

(a) water supply services;

(b) services relating to collection and treatment of used water;

(c) services relating to management of storm water.

4. The following services relating to healthcare:

(a) acute hospital care services;

(b) services relating to disease surveillance and response.

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5. The following services relating to banking and finance:

(a) banking services, including cash withdrawal and deposits,corporate lending, treasury management and payment services;

(b) payments clearing and settlement services;

(c) securities trading, clearing, settlement and depository services;

(d) derivatives trading, clearing and settlement services;

(e) services relating to maintenance of monetary and financialstability;

(f) currency issuance;

(g) services relating to cash management and payments for theGovernment.

6. The following services relating to security and emergency services:

(a) civil defence services;

(b) police and security services;

(c) immigration services;

(d) registration services under the National Registration Act(Cap. 201);

(e) prison security and rehabilitation services.

7. The following services relating to aviation:

(a) air navigation services;

(b) airport passenger control and operations;

(c) airport baggage and cargo handling operations;

(d) aerodrome operations;

(e) flight operations of aircraft.

8. The following services relating to land transport:

(a) rapid transit systems operated under a licence granted under theRapid Transit Systems Act (Cap. 263A);

(b) bus services operated under a bus service licence granted under theBus Services Industry Act 2015 (Act 30 of 2015);

(c) monitoring and management of rapid transit systems operatedunder a licence granted under the Rapid Transit Systems Act;

(d) monitoring and management of bus services operated under a busservice licence granted under the Bus Services Industry Act 2015;

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(e) monitoring and management of road traffic.

9. The following services relating to maritime:

(a) monitoring and management of shipping traffic;

(b) container terminal operations;

(c) general and bulk cargo terminal operations;

(d) cruise and ferry passenger terminal operations;

(e) pilotage, towage and water supply;

(f) bunker supply;

(g) salvage operations;

(h) passenger ferry operations.

10. The following services relating to functioning of Government:

(a) services relating to the electronic delivery of Government servicesto the public;

(b) services relating to the electronic processing of internalGovernment functions.

11. The following services relating to media:

(a) services relating to broadcasting of free-to-air television and radio;

(b) services relating to publication of newspapers;

(c) security printing services.

PART 3

REQUIREMENTS FOR A, C OR D

1. The requirements which A, C or D must satisfy are as follows:

(a) the annual revenue of A, C orD (as the case may be) determined inthe prescribed manner, or (where A,C orD is a member of a group)the annual revenue of that group determined in the prescribedmanner, must not exceed the prescribed amount;

(b) A, C orD (as the case may be) suffered a fall in prescribed revenueof the prescribed amount for the prescribed period, determined inthe prescribed manner.

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PART 4

ADJUSTMENT OF RIGHTS AND OBLIGATIONS

The rights and obligations of the parties and their assignees upon atermination of a specified contract set out in the first column below (otherthan a specified contract that has become impossible of performance or beenfrustrated within the meaning of section 2(1) of the Frustrated Contracts Act(Cap. 115)) are adjusted in the manner set out opposite that contract in thesecond column below:

First column Second column

Specified contract Effects on rights and obligations ofparties to specified contract

upon termination

1. Any lease or licencefor non-residentialimmovable property

(a) a tenant or licensee must, on orbefore the date of termination —

(i) reinstate the property inaccordance with the terms ofthe lease or licence; and

(ii) deliver vacant possession ofthe property to the landlord orlicensor;

(b) a tenant or licensee who fails toreinstate the property in accordancewith paragraph (a)(i) is liable to paythe landlord or licensor —

(i) any sum set out in the lease orlicence for the failure toreinstate the property (ifapplicable); or

(ii) any loss suffered by thelandlord or licensor as aconsequence of the failure toreinstate the property(including any cost incurredby the landlord or licensor toremedy the breach);

(c) a tenant or licensee who fails todeliver vacant possession of theproperty to the landlord or licensor

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in accordance with paragraph (a)(ii)is liable to pay the landlord orlicensor —

(i) any sum that the tenant orlicensee is liable to pay underthe law or lease or licence, forthe continued possession ofthe property; and

(ii) any interest, late paymentcharge or other charge(however described) on thesum mentioned insub-paragraph (i) (ifapplicable);

(d) the tenant or licensee remains liableto the landlord or licensor under thelease or licence for the following:

(i) any rent, licence fee or othermoneys, in relation to theperiod of the lease or licenceon or before the date oftermination, that the tenant orlicensee is required to pay(whether before, on or afterthe date of termination);

(ii) any expense or loss incurredor suffered by the landlord orlicensor, in relation to theperiod of the lease or licenceon or before the date oftermination, as aconsequence of any breach ofthe lease or licence by thetenant or licensee on or beforethe date of termination;

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(iii) any amount that the tenant orlicensee is required to pay tothe landlord or licensor underan indemnity, in relation to theperiod of the lease or licenceon or before the date oftermination;

(iv) any interest, late paymentcharge or other charge(however described) on anamount mentioned insub-paragraph (i), (ii) or (iii)(if applicable);

(e) subject to paragraph (c), the tenant orlicensee is not liable to the landlordor licensor under the lease or licencefor the following:

(i) any rent, licence fee or othermoneys, in relation to theremaining period of the leaseor licence after the date oftermination, that the tenant orlicensee is required to pay(whether before, on or afterthe date of termination);

(ii) any sum (other than a summentioned in paragraph (b) or(d) or pursuant tosection 43(3)) that the tenantor licensee would have beenrequired to pay for anytermination or repudiation ofthe lease or licence;

(iii) any interest, late paymentcharge or other charge(however described) on anamount mentioned insub-paragraph (i) or (ii) (ifapplicable); and

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(f) the landlord or licensor —

(i) is not liable to give the tenantor licensee exclusivepossession to or a right touse or occupy any part of theproperty after the date oftermination;

(ii) is, subject tosub-paragraph (iii), liable,within 4 weeks after the dateof termination, to refund orreturn to the tenant or licensee(as the case may be) withoutinterest —

(A) any security depositgiven by the tenant orlicensee pursuant to thelease or licence; and

(B) any rent, licence fee orother moneys, or part ofany rent, licence fee orother moneys, paid bythe tenant or licensee inadvance for theremaining period of thelease or licence after thedate of termination; and

(iii) may set-off from any sum thatthe landlord or licensor isliable to pay the tenant orlicensee, any sum that thetenant or licensee is liable topay the landlord or licensorunder paragraph (b), (c) or (d)or pursuant to section 43(3).

2. Any contract for thesupply of goods orservices

(a) where any services have beenperformed or title to goodstransferred on or before the date oftermination, in accordance with theterms of the contract, the party liable

69

under the contract (whether before,on or after the date of termination) topay any counterparty for thoseservices or goods, is liable to payfor those services or goods accordingto the contract price;

(b) where —

(i) any act is performed by a partyon or before the date oftermination, in order toperform any services ortransfer title to any goods inaccordance with the terms ofthe contract;

(ii) the contract does not providefor a price for the performanceof that act such thatparagraph (a) does not apply;and

(iii) no payment has been receivedand no sum is otherwisepayable under this Part inrelation to that act,

the counterparty liable to pay forthose services or goods is liable topay a reasonable sum (not exceedingthe contract price agreed for allservices or goods in the contract)for —

(iv) any expenses incurred by theparty who performed the act;or

(v) the value of the benefitreceived by the counterparty,

as the case may be;

(c) a party remains liable to acounterparty under the contract forthe following:

70

(i) any expense or loss incurredor suffered by thecounterparty, in relation tothe period of the contract onor before the date oftermination, as aconsequence of any breach ofthe contract by the party on orbefore the date of termination;

(ii) any amount that the party isrequired to pay to thecounterparty under anindemnity, in relation to theperiod of the contract on orbefore the date of termination;

(iii) any interest, late paymentcharge or other charge(however described) on anamount mentioned insub-paragraph (i) or (ii) (ifapplicable);

(d) a party is not liable to —

(i) pay any sum to a counterparty(other than a sum mentionedin paragraph (a), (b) or (c))that the party would have beenrequired to pay for anytermination or repudiation ofthe contract;

(ii) pay any interest, late paymentcharge or other charge(however described) on anamount mentioned insub-paragraph (i);

(iii) perform any services ordeliver any goods that theparty is required to performor deliver after the date oftermination, under thecontract; or

71

(iv) accept any services or takedelivery of any goods that theparty is required to accept ortake delivery of after the dateof termination, under thecontract;

(e) a party is, subject to paragraph (f),liable, within 4 weeks after the dateof termination, to refund or return (asthe case may be) to a counterpartywithout interest —

(i) any security deposit given bythe counterparty pursuant tothe contract; and

(ii) any payment or part of anypayment made by thecounterparty in advance forany services the party wouldhave had to perform or goodsthe party would have had todeliver after the date oftermination (had the contractnot been terminated); and

(f) a party may set-off from any sumthat the party is liable to pay acounterparty, any sum that thecounterparty is liable to pay theparty under paragraph (a), (b) or (c).

3. Any hire-purchaseagreement orconditional saleagreement mentioned inparagraph 1(b) of Part 1

(a) a hirer of the good must, on or beforethe date of termination —

(i) deliver up the good to theowner in accordance with theterms of the agreement; and

(ii) pay to the owner thedifference (if any) between —

(A) the aggregate of allinstalment payments(less interest) that theowner would have been

72

entitled to receive forthe remaining period ofthe agreement after thedate of termination; and

(B) the price that could beobtained by the owner ifthe good is sold ordisposed of at the timethe good is delivered upby the hirer pursuant tosub-paragraph (i);

(b) a hirer is liable to pay the followingto the owner:

(i) any costs incurred by theowner to re-possess the goodif the hirer fails to deliver upthe good in accordance withparagraph (a)(i);

(ii) any costs incurred by theowner to sell or dispose ofthe good (if applicable);

(c) the hirer remains liable to the ownerunder the agreement for thefollowing:

(i) any instalment payment,interest, fee or other moneys,in relation to the period of theagreement on or before thedate of termination, that thehirer is required to pay(whether before, on or afterthe date of termination);

(ii) any expense or loss incurredor suffered by the owner, inrelation to the period of theagreement on or before thedate of termination, as aconsequence of any breach ofthe agreement by the hirer on

73

or before the date oftermination;

(iii) any amount that the hirer isrequired to pay to the ownerunder an indemnity, in relationto the period of the agreementon or before the date oftermination;


(d) the hirer is not liable to the ownerunder the agreement for thefollowing:

(i) any early settlement fee orother fees or damages (otherthan an amount mentioned inparagraph (a), (b) or (c)) thatthe hirer would have beenrequired to pay for anytermination or repudiation ofthe agreement;

(ii) any instalment payment,interest, fee or other moneys,in relation to the period of theagreement after the date oftermination, that the hirer isrequired to pay (whetherbefore, on or after the date oftermination);

(iii) any interest, late paymentcharge or other charge(however described) on anamount mentioned insub-paragraph (i) or (ii) (ifapplicable);

74

(iv) any insurance premium thatthe hirer is required to pay toprocure, maintain or renewany insurance coverage forthe good after the date oftermination; and

(e) the owner —

(i) remains liable to the hirerunder the agreement for thefollowing:

(A) any moneys, in relationto the period of theagreement on or beforethe date of termination,that the owner isrequired to pay(whether before, on orafter the date oftermination);

(B) any expense or lossincurred or suffered bythe hirer, in relation tothe period of theagreement on or beforethe date of termination,as a consequence of anybreach of the agreementby the owner on orbefore the date oftermination;

(ii) is, subject tosub-paragraph (iii), liable,within 4 weeks after the dateof termination, to refund to thehirer without interest —

(A) any deposit given by thehirer pursuant to theagreement; and

75

(B) any instalmentpayment, interest, feeor other moneys, orpart of any instalmentpayment, fee or othermoneys, paid by thehirer in advance for theremaining period of theagreement after the dateof termination; and

(iii) may set-off from any sum thatthe owner is liable to pay thehirer, any sum that the hirer isliable to pay the owner underparagraph (a), (b) or (c).

4. Lease of commercialequipment mentioned inparagraph 1(c) of Part 1

(a) a lessee must, on or before the dateof termination —

(i) reinstate the commercialequipment in accordancewith the terms of the lease;and

(ii) deliver possession of thecommercial equipment to thelessor;

(b) a lessee who fails to reinstate thecommercial equipment inaccordance with paragraph (a)(i) isliable to pay the lessor —

(i) any sum set out in the lease forthe failure to reinstate thecommercial equipment (ifapplicable); or

(ii) for any loss suffered by thelessor as a consequence of thefailure to reinstate thecommercial equipment(including any cost incurredby the lessor to remedy thebreach);

76

(c) the lessee remains liable to the lessorunder the lease for the following:

(i) any fee or other moneys, inrelation to the period of thelease on or before the date oftermination, that the lessee isrequired to pay (whetherbefore, on or after the date oftermination);

(ii) any expense or loss incurredor suffered by the lessor, inrelation to the period of thelease on or before the date oftermination, as a consequenceof any breach of the lease bythe lessee on or before the dateof termination;

(iii) any amount that the lessee isrequired to pay to the lessorunder an indemnity, in relationto the period of the lease on orbefore the date of termination;


(d) subject to paragraph (b), the lessee isnot liable to the lessor under thelease for the following:

(i) any fee or other moneys, inrelation to the remainingperiod of the lease after thedate of termination, that thelessee is required to pay(whether before, on or afterthe date of termination);

(ii) any sum (other than a summentioned in paragraph (c))

77

that the lessee would havebeen required to pay for anytermination or repudiation ofthe lease;

(iii) any interest, late paymentcharge or other charge(however described) on anamount mentioned insub-paragraph (i) or (ii) (ifapplicable); and

(e) the lessor —

(i) is not liable to lease thecommercial equipment to thelessee after the date oftermination;

(ii) is, subject tosub-paragraph (iii), liable,within 4 weeks after the dateof termination, to refund orreturn to the lessee (as the casemay be) without interest —

(A) any security depositgiven by the lesseepursuant to the lease;and

(B) any payment, or part ofany payment, made bythe lessee in advance forthe remaining period ofthe lease after the dateof termination; and

(iii) may set-off from any sum thatthe lessor is liable to pay thelessee, any sum that the lesseeis liable to pay the lessor underparagraph (b) or (c).

78

5. All specified contracts(including any specifiedcontract mentioned inparagraphs 1 to 4)

(a) any obligation under the followingterms in the contract, to the extentthat they have any force or effect,survive the termination of thecontract:

(i) any term relating to thegoverning law or competentcourts in the event oflitigation;

(ii) any term to refer the whole orpart of a dispute which hasarisen, or which may arise,between the parties foralternative dispute resolution,including negotiation,mediation or arbitration;

(iii) any term relating to thetreatment of confidentialinformation;

(iv) any term relating to a restraintof trade or an obligation not tocompete;

(v) any term excluding orrestricting a party’s liabilityfor —

(A) breach of contract;

(B) breach of an obligationarising under anywritten law or rule oflaw; or

(C) other breach of duty;

(vi) any warranty in respect of anygoods delivered or servicesperformed on or before thedate of termination.

79

THIRD SCHEDULESections 43(3) and (7), 66(7), 78(1) and

(2) and 79

COMPENSATION

5 PART 1

DESCRIPTIONS OF SPECIFIED CONTRACTS

1. The descriptions of specified contracts are those specified inparagraph 1(a) of Part 1 of the Second Schedule (subject to paragraphs 2and 3 of that Part).

10 PART 2

REQUIREMENTS FOR B

1. The requirements which B must satisfy are as follows:

(a) B must be —

(i) an individual;

15 (ii) a sole proprietor; or

(iii) a company incorporated solely to hold the interest in theimmovable property that is the subject of the lease or licencein question, and owned only by one or more individuals andsole proprietors;

20 (b) B’s annual income, determined in the prescribed manner, does notexceed the prescribed amount for the prescribed period;

(c) B’s rental income derived from the lease or licence of theimmovable property, determined in the prescribed manner, is 50%or more of B’s annual income.

25 2. Where B is not the sole lessor or licensor of the immovable property, theother lessors or licensors must also be persons mentioned insub-paragraphs (i), (ii) and (iii) of paragraph 1(a).

80

FOURTH SCHEDULESections 43(5), 53(3), 54(2), 78(1) and

(2) and 79

PART 1

5DESCRIPTIONS OF SPECIFIED CONTRACTS

1. The descriptions of specified contracts are those specified inparagraph 1(b) and (c) of Part 1 of the Second Schedule (subject toparagraphs 2 and 3 of that Part).

PART 2

10REQUIREMENTS FOR A

1. The requirements which A must satisfy are those in Part 3 of the SecondSchedule.

FIFTH SCHEDULESections 44, 78(1) and 79

15MORATORIUM

PART 1

PERIOD OF MORATORIUM

1. The period of moratorium applicable to any person served with a noticeof negotiation —

20(a) begins on the day on which the notice of negotiation is served onthe person in accordance with section 45; and

(b) ends, subject to paragraph 2, on the earliest of the following:

(i) where only the notice of negotiation, and no other noticeunder Division 2 or 3 of Part 10, is served and lodged under

25that Division — the expiry of 8 weeks after the notice ofnegotiation is served on the person in accordance withsection 45;

(ii) after the expiry of the period mentioned insub-paragraph (i) —

30(A) the day on which the notice of negotiation iswithdrawn in accordance with section 48;

(B) where a notice of objection served and lodged undersection 46 is withdrawn under section 48(3), and the

81

adjustment relief Registrar determines that noadjustment relief assessor needs to be appointedunder section 65(2) — the day on which theadjustment relief Registrar makes the determination;

5 (C) where the adjustment relief Registrar refuses to acceptany notice of objection for lodgment pursuant tosection 46(3) and determines that no adjustment reliefassessor needs to be appointed under section 65(2) —the day on which the adjustment relief Registrar makes

10 the determination;

(D) where only one notice for adjustment is served andlodged under section 47, and that notice is withdrawnunder section 48(4) — the day on which that notice iswithdrawn;

15 (E) where more than one notice for adjustment is servedand lodged under section 47, and every such notice iswithdrawn under section 48(4)— the day on which thelast subsisting notice for adjustment is withdrawn;

(F) where a notice for compensation served and lodged20 under section 51 is withdrawn under section 52, and no

notice of objection and no notice for adjustment havebeen served and lodged under Division 2 of Part 10—the day on which the notice for compensation iswithdrawn;

25 (G) the day on which an adjustment relief assessor hasmade all the determinations required to be made inrelation to the notice of negotiation.

2. Despite paragraph 1(b), the period of moratorium applicable to anyperson served with the notice of negotiation, in relation to a specified

30 contract, ends on the day on which a certificate certifying that the specifiedcontract is a contract of national interest is issued under section 60.

3. The period of moratorium applicable to any person served with a noticeof revision —

(a) begins on the day on which the notice of revision is served on the35 person in accordance with section 53; and

(b) ends on the earliest of the following:

(i) where no notice of objection is served and lodged undersection 54 — the expiry of 6 weeks after the notice of

82

revision is served on the person in accordance withsection 53;

(ii) where a notice of objection served and lodged undersection 54 is withdrawn under section 55 after the expiry

5of the period mentioned in sub-paragraph (i) — the day onwhich the notice is withdrawn;

(iii) the day on which an adjustment relief assessor has made allthe determinations required to be made in relation to thenotice of revision.

10PART 2

ACTIONS AND PROCEEDINGS THATMUST NOT BE TAKEN, ETC.

1. Despite any law or anything in the contract, a person must not, during theapplicable moratorium period mentioned in Part 1, take any of the actions

15described in paragraph 2 in relation to —

(a) if the person is served with a notice of negotiation in relation to aspecified contract —

(i) any failure to perform any obligation under the specifiedcontract by any other party during the applicable moratorium

20period mentioned in Part 1 (called in this Part the subsequentfailure); and

(ii) if the specified contract is terminated under any other writtenlaw or rule of law mentioned in section 43(6)— any expenseor loss incurred or suffered by the person, in relation to the

25period of the specified contract after the date of termination,as a consequence of any breach of the specified contract byany other party to the specified contract (called in this Partthe future loss); and

(b) if the person is served with a notice of revision in relation to a30specified contract (being a contract mentioned in paragraph 1(b) of

Part 1 of the Second Schedule)— the non-payment of any amountmentioned in section 53(4)(a) or any interest or other charge(however described) on that amount (called in this Part the accruedarrears).

352. The actions mentioned in paragraph 1 are —

(a) the commencement or continuation of an action in a court againstthe other party or the other party’s guarantor or surety (includingby amending the pleadings for any such action already

83

commenced to include the subsequent failure in the action or claimfor the future loss or accrued arrears);

(b) the commencement or continuation of any arbitral proceedingsunder the Arbitration Act (Cap. 10) against the other party or the

5 other party’s guarantor or surety (including by amending thepleadings for any such proceedings already commenced to includethe subsequent failure in the proceedings or claim for the futureloss or accrued arrears);

(c) the enforcement of any security over any immovable property;

10 (d) the enforcement of any security over any movable property usedfor the purpose of a trade, business or profession;

. Example

Plant and machinery.

(e) the making of a call on a performance bond or equivalent given15 pursuant to the specified contract at any time earlier than 7 days

before —

(i) the date of expiry of the performance bond or equivalent asstated in the performance bond or equivalent; or

(ii) where the term of the performance bond or equivalent is20 extended under paragraph 4 or otherwise — the date of

expiry of the performance bond or equivalent following suchextension;

(f) the making of an application under section 210(1) of theCompanies Act for a meeting of creditors to be summoned to

25 approve a compromise or an arrangement in relation to the otherparty or the other party’s guarantor or surety;

(g) the making of an application for a judicial management order inrelation to the other party or the other party’s guarantor or surety;

(h) the making of an application for the winding up of the other party30 or the other party’s guarantor or surety;

(i) the making of a bankruptcy application against the other party orthe other party’s guarantor or surety;

(j) the appointment of a receiver or manager over any property orundertaking of the other party or the other party’s guarantor or

35 surety;

(k) the commencement or levying of execution, distress or other legalprocess against any property of the other party or the other party’s

84

guarantor or surety, except with the leave of the court and subjectto such terms as the court imposes;

(l) the repossession of any goods used for the purpose of a trade,business or profession, under the specified contract (being a

5contract mentioned in paragraph 1(b) of Part 1 of the SecondSchedule);

. Example

A motor car used as a private hire car, that is the subject of a hire-purchaseagreement.

10(m) in relation to a subsequent failure or any accrued arrears —

(i) the termination of the specified contract; or

(ii) the exercise of a right of re-entry or forfeiture under thespecified contract (being a contract mentioned inparagraph 1(a) of Part 1 of the Second Schedule), or the

15exercise of any other right that has a similar outcome;

(n) the enforcement against the other party or the other party’sguarantor or surety of a judgment of a court, or an award made byan arbitral tribunal in arbitral proceedings conducted under theArbitration Act; and

20(o) such other action as may be prescribed.

3. For the purposes of paragraph 2(a) or (b), where the action orproceedings relate to the subsequent failure, future loss or accrued arrearsand any other matter, that provision does not apply to the part of the action orproceedings relating to that other matter.

254. For the purposes of paragraph 2(e) and despite anything in aperformance bond or equivalent given pursuant to the specified contract,where —

(a) the other party makes an application to the issuer of theperformance bond or equivalent not less than 7 days before the

30date of expiry of the performance bond or equivalent, to extend theterm of the performance bond or equivalent; and

(b) the other party serves a notice of the application on the personmentioned in paragraph 1 at the same time,

then the term of the performance bond or equivalent is extended to a date that35is 7 days after the end of the applicable moratorium period mentioned in

Part 1, or such other date as may be agreed between the other party, theperson mentioned in paragraph 1 and the issuer, and that date or other date (as

85

the case may be) is treated as the date of expiry of the performance bond orequivalent.

5. Any period of limitation prescribed by any law or in any contract for thetaking of any action or proceedings in relation to the subsequent failure,

5 future loss or accrued arrears is extended by a period equal to the applicablemoratorium period mentioned in Part 1.

6. Any of the following, namely:

(a) proceedings before a court;

(b) arbitral proceedings under the Arbitration Act;

10 (c) such other proceedings as may be prescribed,

in relation to the future loss that are pending on the first day of the applicablemoratorium period mentioned in Part 1, must be stayed on the lodgment bythe other party of a copy of the notice of negotiation with the court, arbitraltribunal, or other person or body before which the action or proceedings are

15 brought, until the expiry of the applicable moratorium period mentioned inPart 1.

7. Any of the following, namely:

(a) proceedings before a court;

(b) arbitral proceedings under the Arbitration Act;

20 (c) such other proceedings as may be prescribed,

in relation to the accrued arrears that are pending on the first day of theapplicable moratorium period mentioned in Part 1, must be stayed on thelodgment by the other party of a copy of the notice of revision with the court,arbitral tribunal, or other person or body before which the action or

25 proceedings are brought, until the expiry of the applicable moratorium periodmentioned in Part 1.

8. For the purposes of the winding up of the other party or the other party’sguarantor or surety, and despite anything in any law, each of the followingperiods is extended by a period equal to the applicable moratorium period

30 mentioned in Part 1:

(a) each period mentioned in section 226(1)(a), (b) and (c) of theInsolvency, Restructuring and Dissolution Act 2018 (Act 40 of2018) (including that provision as applied by section 130 of theVariable Capital Companies Act 2018);

35 (b) each period mentioned in sections 228(2), 229(2)(a) and (b) and240(2) of the Insolvency, Restructuring and Dissolution Act 2018

86

(including those provisions as applied by section 130 of theVariable Capital Companies Act 2018);

(c) each period mentioned in paragraphs 79(1)(a), (b) and (c), 82(2),84(1) and 85(1) and (2) of the Fifth Schedule to the Limited

5Liability Partnerships Act (Cap. 163A).

9. For the purposes of a judicial management of the other party or the otherparty’s guarantor or surety, and despite anything in any law, each of theperiods in the following provisions is extended by a period equal to theapplicable moratorium period mentioned in Part 1:

10Sections 226(1)(a), (b) and (c), 228(2), 229(2)(a), (b) and (c) and240(2) of the Insolvency, Restructuring and Dissolution Act 2018.

10. For the purposes of the bankruptcy of the other party or the other party’sguarantor or surety, and despite anything in any law, each of the periods in thefollowing provisions is extended by a period equal to the applicable

15moratorium period mentioned in Part 1:

Sections 363(1)(a), (b) and (c) and 366(2) of the Insolvency,Restructuring and Dissolution Act 2018.

11. Regulations may be made under section 79 for any of the following:

(a) to extend any period specified in any other written law governing20any other entity or matter that corresponds to any provision

mentioned in paragraph 8 or 9;

(b) to prescribe the circumstances in which this Part does not apply.

12.—(1) Without affecting section 44(2), any action or proceedingscommenced in breach of paragraph 1 must, on the lodgment of a copy of

25the notice of negotiation or notice of revision (as the case may be) with thecourt, arbitral tribunal or other person or body before which the proceedingsare brought, be dismissed to the extent of the breach.

(2) Without affecting section 44(2), the enforcement of any security inbreach of paragraph 1 is void except as against a bona fide purchaser for

30value without notice of the notice of negotiation or notice of revision, as thecase may be.

(3) Without affecting section 44(2), the following actions are void:

(a) the appointment of a receiver or manager over any property orundertaking of a person made in breach of paragraph 1;

35(b) a call on a performance bond or equivalent made in breach ofparagraph 1.

87

(4) Each of the following actions taken in breach of paragraph 1 is invalid:

(a) the repossession of any goods under a contract;

(b) the termination of a contract;

(c) the exercise of a right of re-entry or forfeiture under a contract, or5 the exercise of any other right that has a similar outcome.”.

Miscellaneous amendments

11. The principal Act is amended —

(a) by deleting the definition of “Minister” in section 2 andsubstituting the following definition:

10 “ “Minister” means —

(a) except as provided in paragraphs (b),(c) and (d), the Minister charged withthe responsibility for law;

(b) for the purposes of Part 6 — the15 Minister charged with the

responsibility for finance;

(c) for the purposes of Part 7 — theMinister charged with theresponsibility for health; and

20 (d) for the purposes of Parts 8A, 8B and8C — the Minister charged with theresponsibility for nationaldevelopment;”;

(b) by deleting the definition of “prescribed period” in25 section 2 and substituting the following definition:

“ “prescribed period” —

(a) in relation to Part 1 or 3— means theperiod prescribed under section 3 asextended or shortened under that

30 section for Part 1 or 3; and

(b) in relation to any scheduled contractin Part 2 — means the period

88

prescribed under section 3 asextended or shortened under thatsection for that Part or for adescription of contracts to which

5that contract belongs, as the casemay be;”;

(c) by deleting the word “Schedule” in the followingprovisions and substituting in each case the words “FirstSchedule”:

10Sections 2 (definition of “scheduled contract”), 5(6),13(3)(c) and (d) and 18(1) and section heading;

(d) by deleting the words “Unless the Registrar” insection 12(3) and substituting the words “Subject tosubsection (4) and unless the Registrar”;

15(e) by inserting, immediately after subsection (3) ofsection 12, the following subsection:

“(4) Despite subsection (3) —

(a) any application for an assessor’sdetermination in respect of a contract that

20falls within a description of scheduledcontracts prescribed as scheduledcontracts to which this subsection applies,that is pending at the expiry of theprescribed period for that description of

25scheduled contracts, is deemed to bewithdrawn; and

(b) the Registrar must not appoint an assessorto determine the application.”;

(f) by deleting the words “On an application” in section 13(1)30and substituting the words “Subject to subsection (1A), on

an application”;

(g) by inserting, immediately after subsection (1) ofsection 13, the following subsection:

89

“(1A) Despite subsection (1) —

(a) any application for an assessor’sdetermination in respect of a contract thatfalls within a description of scheduled

5 contracts prescribed as scheduledcontracts to which this subsection applies,that has not been determined by an assessorat the expiry of the prescribed period forthat description of scheduled contracts, is

10 deemed to be withdrawn; and

(b) the assessor must not make a determinationon the application.”;

(h) by deleting the words “last date of the section 3 prescribedperiod” in the definition of “relevant period” in

15 section 19B(1) and substituting the words “prescribeddate”;

(i) by deleting the definition of “section 3 prescribed period”in section 19B(1);

(j) by deleting the words “last date of the section 3 prescribed20 period” in the following provisions and substituting in each

case the words “prescribed date”:

Sections 19P(2)(a), (3) and (5) and 19S(2) and(4) (definition of “specified period”); and

(k) by inserting, immediately after subsection (2) of25 section 36, the following subsection:

“(3) In this section, “prescribed period” means aperiod prescribed under section 39 for the purposes ofthis Part.”.

90

EXPLANATORY STATEMENT

This Bill seeks to amend the COVID-19 (Temporary Measures) Act 2020(Act 14 of 2020).

Clause 1 relates to the short title and commencement.

Clause 2 amends section 1 (short title and commencement) to provide thatdespite the expiry of Part 2 of the Act, provisions of that Part (includingregulations made under it) that have been incorporated by reference in other Partsof the Act or in regulations continue to have effect. Clause 2 also amends section 1to provide that despite the expiry of Part 2 of the Act, sections 10 and 11 (whichdeal with the appointment of a Registrar of assessors and a panel of assessors)continue to have effect for the purpose of appointing assessors under Part 8.

Clause 3 amends section 3 (prescribed period) to provide that the period may beextended or shortened in respect of different Parts, and (in relation to Part 2) inrespect of different descriptions of scheduled contracts.

Clause 4 amends section 19X (regulations for Part 2A) to allow the backdatingof regulations that are made to prescribe the criteria for a prescribedtenant-occupier or PTO under Part 2A, and regulations that are made toprescribe the additional criteria that a PTO is to satisfy to retain the additionalrental relief.

Clause 5 amends section 32 (regulations for Part 6) for the following purposes:

(a) to enable regulations to be made in order to account for the rentalreliefs to which a tenant of a property is entitled under Part 2A. Theregulations may treat an amount of the benefit of the reduction ofproperty tax on the property (called the benefit) as having already beenpassed to the tenant, and an amount of the benefit that has already beenpassed to the tenant as recoverable by the owner from the tenant. Thisis because the current regulations prescribing the amount of the benefitthat the owner is required to pass to a tenant did not take into accountthe rental reliefs to which the tenant is entitled under Part 2A;

(b) to enable regulations to be made to enable the recovery by the owner ofany property from his or her tenant of an amount of the benefit that hasbeen passed to the tenant under specified circumstances. The ownermay (for example) have passed to the tenant an amount of the benefitwhich is no longer accurate because of a subsequent issue of a notice ofcash grant to the owner resulting in a waiver of rent under Part 2A;

(c) to enable regulations prescribing the amount or extent of the benefit tobe backdated, and to enable an owner of property to recover from his orher tenant an amount of the benefit that the owner has passed to thetenant in reliance on the law in force before the making of theretrospective regulations.

91

Clause 6 inserts a new Part 8A (comprising sections 39A and 39B) whichprovides for the extension of time for the completion date for construction worksprovided by construction contracts.

The new section 39A sets out the construction contracts to which the Partapplies.

The new section 39B provides that any completion date for construction worksunder a construction contract (to which the Part applies) is extended by amaximum period of 122 days from and including that completion date, less thenumber of days in subsection (2). Where the completion date for any constructionworks is extended, then the completion date so extended is treated as thecompletion date provided by the construction contract for those constructionworks, for the purposes of the construction contract. The extended completiondate may be further extended in accordance with any provision in the constructioncontract allowing for an extension of the completion date. This extension does notapply to completion dates in certain circumstances, including if constructionworks were performed at any time between 20 April 2020 and 30 June 2020 (bothdates inclusive), or if court, arbitral or tribunal proceedings have been commencedbefore 2 November 2020 in respect of the failure to comply with the completiondate.

Clause 7 inserts a new Part 8B (comprising sections 39C to 39F) which providesfor cost-sharing in construction contracts.

The new section 39C sets out the construction contracts to which the Partapplies.

The new section 39D provides that a party required to perform the constructionworks under the construction contract is allowed, under certain circumstances, toclaim from the party for whom the construction works are performed, for costs forthe purpose of or in connection with the performance of the construction worksunder the construction contract. The costs that may be claimed for each specifiedperiod is 50% of the total qualifying costs incurred in relation to each specifiedperiod, up to 0.2% of the contract sum. The total amount that the party required toperform the construction works may claim must not exceed 1.8% of the contractsum.

The new section 39D also provides that where the construction contract is oneto which the Building and Construction Industry Security of Payment Act(Cap. 30B) applies, the party required to perform the construction works mustclaim for the costs by including the amount in a payment claim that the partyserves on the party for whom the construction works are performed, in accordancewith that Act. Part III of that Act applies to the qualifying costs as it applies toprogress payment, subject to any prescribed modifications.

The new section 39E provides that where a party has included an amount forqualifying costs in a payment claim under the Building and Construction Industry

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Security of Payment Act and the other party fails to pay the amount, the first partyis entitled to make an adjudication application in accordance with that Act. Indetermining the adjudication application, the adjudicator must determine whetherthe Part applies to the party and the amount that the party for whom theconstruction works are performed is liable to pay.

The new section 39F empowers the Minister to make regulations for carryingout the purposes and provisions of the Part.

Clause 8 inserts a new Part 8C (comprising sections 39G to 39P) whichprovides for the extension of the delivery date provided by an affected sale andpurchase agreement for housing accommodation or commercial property.

The new section 39G defines certain terms used in the Part.

The new section 39H sets out the agreements to which the Part applies.

The new section 39I provides that the delivery date provided by an affectedagreement (referred to in the new section 39H) is extended if the developernotifies the purchaser of the period of the extension in the prescribed form andmanner and within the prescribed time. The developer may extend the deliverydate in this manner one or more times except that the total period of all extensionsdoes not exceed 122 days. The developer may extend the delivery date so that thetotal period of extension exceeds 122 days by notifying the purchaser of itsintention to extend the delivery date and of the proposed period of extension in theprescribed form and manner. This notification triggers the start of the moratoriumperiod (in the new section 39J) but the delivery date is not extended by a specifiedperiod until an assessor has certified that the developer’s inability to deliverpossession of the property by the delivery date is to a material extent caused by aCOVID-19 event and the developer may only be reasonably expected to deliverpossession of the property by the end of the specified period after the delivery datein question.

The new section 39I also provides that where the delivery date is extended,then, despite any law or anything in the affected agreement, the extended deliverydate following the extension is treated as the delivery date provided by the affectedagreement, for the purposes of the affected agreement and, any liability for afailure to comply with the delivery date (without the extension) is extinguished,except in prescribed circumstances or to the extent prescribed.

The new section 39J provides for a moratorium on the taking of certain actionsin relation to the developer’s failure to deliver possession of the property to thepurchaser under the affected agreement by the original delivery date or extendeddelivery date. The moratorium period starts on the day on which the purchaser isnotified of the developer’s intention to extend the delivery date (so that the totalperiod of extension exceeds 122 days) and ends on the day the purchaser isnotified of the assessor’s certification of extension or the prescribed date,whichever is the earlier.

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The new section 39K provides that where the delivery date is extended, thedeveloper is liable to the purchaser for the qualifying costs up to the prescribedamount and the purchaser may claim for reimbursement of the qualifying costsincurred from the developer.

The new section 39L requires the Minister to appoint a Registrar of assessorsfor the purpose of receiving applications by developers for certifications of theextension of the delivery date, and by developers and purchasers for determinationof the amount of qualifying costs that a developer is liable to reimburse apurchaser.

The new section 39M requires the Minister to appoint a panel of assessors.

The new section 39N sets out the requirements for the making of an application,for an assessor’s determination, to the Registrar.

The new section 39O deals with the determinations which an assessor is tomake on an application for certification or determination.

The new section 39P empowers the Minister to make regulations for carryingout the purposes and provisions of the Part.

Clause 9 inserts new Part 10 to provide for various reliefs for persons who havesuffered a fall in their revenue as a result of COVID-19. The reliefs cater for therenegotiation of specified contracts, and if such renegotiations are not possible,allow for other reliefs including the termination of specified contracts (with partiesdischarged from their future obligations under the specified contract, includingexpectation loss) and the revision of payment schedules under specified contracts.

In Division 1 of the new Part 10 (comprising sections 41 to 44), section 41provides for the definition of various terms used in the Part.

Section 42 provides for the application of the Part. In particular, section 42provides for what is a “specified contract”, and also provides that the Part does notapply to contracts required to be terminated by the giving of a notice if the noticewas given before 2 November 2020, even if the period of the notice expires on orafter that date.

Section 43 sets out the reliefs provided under the new Part 10 as follows:

(a) a party (called in the Part A) to a specified contract that is not a contractof national interest and that satisfies other requirements in Part 1 of theSecond Schedule (inserted by clause 10), can, where A satisfies therequirements in Part 3 of that Schedule and is unable to renegotiate theterms of the specified contract, terminate the specified contract. Uponsuch termination, the rights and obligations of the parties to thespecified contract are adjusted in accordance with Part 4 of the SecondSchedule. In general, obligations that have accrued by the time oftermination must be fulfilled, and the parties are discharged from their

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obligations that accrue after that time. Parties are also released fromtheir obligations for future losses suffered as a result of the terminationof the specified contract;

(b) where the specified contract is of a description in Part 1 of the ThirdSchedule (inserted by clause 10), a counterparty to the specifiedcontract (called in the Part B) that satisfies the requirements in Part 2 ofthat Schedule may seek compensation from A for A’s termination ofthe specified contract under the Part. Factors determining the amountof the compensation will be prescribed in subsidiary legislation, andthe compensation is in addition to, and will not affect, the adjustmentof the rights and obligations of the parties under Part 4 of the SecondSchedule;

(c) where the specified contract is of a description in Part 1 of the FourthSchedule (inserted by clause 10) and A satisfies the requirements inPart 2 of that Schedule, A can, instead of terminating the specifiedcontract, revise the schedule of payments by A under the specifiedcontract;

(d) although none of the parties are prevented from exercising their rightsunder the specified contract to terminate their contract, if they do sobefore the specified contract can be terminated under the Part, theirrights and obligations can also be adjusted in accordance with Part 4 ofthe Second Schedule (as if the specified contract had been terminatedunder the Part). This is to prevent parties from preventing A fromtaking advantage of Part 4 of the Second Schedule, by terminating thespecified contract by other available means before A can terminate thespecified contract under the Part.

To facilitate A seeking the various reliefs under the Part, section 44 provides fora moratorium period, during which parties are prevented from taking actionagainst A in relation to any breach of the specified contract during the moratoriumperiod, as well as future losses that may be suffered upon a termination of thespecified contract, as set out in the Fifth Schedule (inserted by clause 10).

Division 2 of the new Part 10 (comprising sections 45 to 50) sets out theprocedure by which the specified contract may be terminated. Section 45 providesfor A to serve a notice of negotiation on various persons associated with thespecified contract, and for B or B’s assignees to object to the same by serving anotice of objection on A and other persons associated with the specified contract.B’s notice of objection must also be lodged with the adjustment relief Registrar. IfB or B’s assignees do not so serve and lodge any notice of objection, Amay serve anotice for adjustment on the persons associated with the specified contract andlodge the same with the adjustment relief Registrar. Section 49 sets out the varioustimes at which the specified contract is treated as so terminated (depending on theexact circumstances of the case). If the specified contract is terminated otherwise

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than by virtue of A’s notice of negotiation, it also clarifies that the date oftermination is that determined by the law under which it is terminated. Section 50clarifies that a contract may be terminated under section 49 before it is certified asa contract of national interest under section 60.

Division 3 of the new Part 10 (comprising sections 51 and 52) sets out theprocedure by which B may claim compensation from A in respect of A’stermination of the specified contract following A’s notice of negotiation. For this,B is required to serve on A, and lodge with the adjustment relief Registrar, a noticefor compensation. B may do so whether or not B objects to A’s notice ofnegotiation.

Division 4 of the new Part 10 (comprising sections 53 to 58) sets out theprocedure for A to revise A’s repayment schedule under the specified contract.Section 53(4) sets out the requirements that the repayment schedule must satisfy. Bmay object to A’s proposed revision. If B does not object or does not succeed in B’sobjections, A’s revised repayment schedule will form part of the specified contractand replace the original repayment schedule. Where the repayment period of therevised repayment schedule extends beyond the original validity period of thespecified contract, the effect is that the validity of the specified contract isextended. Section 57 provides for the consequences of A’s failure to abide by therevised repayment schedule.

Division 5 of the new Part 10 (comprising section 59) provides for theprocedure following a termination of the specified contract before the specifiedcontract can be terminated following A’s service of a notice of negotiation. If thefirstmentioned termination takes place after A’s service of the notice ofnegotiation, the procedure set in motion by that service under Division 2continues, except that the date of termination of the specified contract is the date asper the firstmentioned termination. Where the termination takes place before Acan serve a notice of negotiation, then, despite the specified contract havingalready been terminated, A (or any other party to the specified contract whosatisfies the requirements in Part 3 of the Second Schedule) is still permitted toserve a notice of negotiation. This is to allow the procedure in Division 2 to be putin motion in order for the rights and obligations of the parties to be adjusted inaccordance with Part 4 of the Second Schedule.

Division 6 of the new Part 10 (comprising sections 60 to 62) deals withcertification of contracts as contracts of national interest. A cannot terminate acontract of national interest using the procedure in Division 2. To be a contract ofnational interest, the contract must —

(a) be one the termination of which is likely to affect the provision ofessential services or the ability of a public authority to carry out itsfunctions; and

(b) be certified as such.

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The list of essential services is set out in Part 2 of the Second Schedule (insertedby clause 10). The Government or a public authority need not be a party to suchcontract. Although a contract of national interest cannot be terminated through theprocedure in Division 2, parties can renegotiate the same. Where suchrenegotiations fail, a party that satisfies the requirements in Part 2 of theSecond Schedule can serve a notice for repricing on the other parties, and lodgethe same with the adjustment relief Registrar, for adjustments to be made to theprice in the specified contract.

Division 7 of the new Part 10 (comprising sections 63 to 73) provides for theappointment of an adjustment relief Registrar and adjustment relief assessors, formaking determinations. Where a notice is lodged with the adjustment reliefRegistrar, upon accepting lodgment of the same, the adjustment relief Registrarmust appoint an adjustment relief assessor to determine the matters associatedwith the notice, in accordance with section 66. Section 68 provides thatdeterminations of adjustment relief assessors may be enforced, with the leaveof court, in the same manner as a judgment or an order of court to the same effect.Division 7 also provides for other matters concerning proceedings beforeadjustment relief assessors.

Division 8 of the new Part 10 (comprising sections 74 to 79) provides forvarious miscellaneous matters, including the confidentiality of information anddocuments, the amendment of the Second, Third, Fourth and Fifth Schedules, andthe making of regulations for the purposes of the new Part 10.

Clause 10 renames the Schedule as the First Schedule and inserts new Second,Third, Fourth and Fifth Schedules to specify various matters for the purposes ofthe new Part 10.

Clause 11 makes various miscellaneous amendments that are consequential orrelated to the amendments in clauses 2 to 10.

Clause 11(a) deletes and substitutes the definition of “Minister” to provide forthe relevant Minister for purposes of the new Parts inserted by clauses 6, 7, 8and 9.

Clause 11(b) deletes and substitutes the definition of “prescribed period” insection 2 to take into account the amendments to section 3 by clause 3.

Clause 11(c) amends various provisions in the Act necessitated by the renamingof the Schedule as the First Schedule under clause 10.

Clause 11(d) and (e) and clause 11(f) and (g) amend sections 12 and 13,respectively, to remove the requirement for an assessor to be appointed, and for adetermination to be made, in relation to an application that is pending at the expiryof the prescribed period applicable to the contract.

Clause 11(h), (i) and (j) amends various provisions to provide for a prescribeddate to be used instead of referring to the end of the prescribed period in section 3,

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given the prescribed period that may be prescribed under section 3 may now endon different dates for different Parts, etc.

Clause 11(k) inserts a new subsection (3) in section 36 to clarify that“prescribed period” in Part 8 of the Act is a period prescribed under Part 8 for thepurposes of Part 8, and not any prescribed period under section 3.

EXPENDITURE OF PUBLIC MONEY

This Bill will involve the Government in extra financial expenditure, the exactamount of which cannot at present be ascertained.

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Documents

COVID-19 (Temporary Measures) (Amendment No. 3) Bill · 2020. 11. 2. · COVID-19 (Temporary Measures) (Amendment No. 3) Bill Bill No. 43/2020 [Urgent Bill]. Read the first time on